“NewGen First Home Program” Supports Young Self-owned Homebuyers 7.5% Down Payment with “Progressive Mortgage Repayment” Early Repayment Rebate Up to 1%
New World Development today announced the launch of “NewGen First Home Program”, which aims to provide a further choice in the residential property market for young people to purchase self-owned homes. The program features a down payment as low as 7.5% of the purchase price, stamp duty subsidized by the developer and “Progressive Mortgage Repayment” to alleviate the difficulties of young people in affording heavy down payment and mortgage installments, as well as the high cost of other relevant expenses.
“NewGen First Home Program” is aimed at Hong Kong permanent residents aged from 25 to 35 who have never owned any properties in Hong Kong. Applicants can purchase any new unit released under this program in joint ownership with another eligible buyer. This will offer young couples a chance to own their first home.
Three special features in “NewGen First Home Program” put together create a lower threshold for young self-owning homebuyers, including:
- Low down payment: A down payment as low as 7.5% of the purchase price will enable applicants to take an easier first step towards home purchase.
- “Progressive Mortgage Repayment”: Young people who recently joined the workforce receive a relatively lower income which however gradually increases as they gain in seniority and get promotion. In keeping with their income levels, the program includes a “Progressive Mortgage Repayment” arrangement in which 10-30% reductions on the original monthly mortgage installment will be offered for the first 10 years. Such relaxation of mortgage repayment will reduce applicants’ burden in the early stage of loan tenor. The program gives applicants the flexibility to choose whether to adopt this repayment method or not as well as deciding on the length of loan tenor. The maximum tenor is 40 years.
- Subsidized stamp duty: In addition to dealing with heavy down payments, home purchase entails other expenses including stamp duty, legal fees and furniture costs. Under this program, the developer will take on the expense of the Ad Valorem Stamp Duty (max. 3.75% of purchase price) to further alleviate the burden of applicants.
Another special feature of the program is the early repayment incentive. If applicants are able to make early repayment at or above HK$50,000 each time, they are entitled to a 1% extra repayment allowance without any penalty. This offer can be used to settle the remaining principal of the mortgage loan or disbursed as designated shopping mall cash coupons of the same value.
Transfer of ownership or tenancy of the property concerned is not allowed for the first five years. The program aims to help young people realize their dreams of purchasing a self-owned home, instead of encouraging speculation on residential properties. For details of the program, please refer to the appendix.
Online application for this pilot program opens from today at https://newgenfirsthome.nwd.com.hk. The deadline of application is 6pm on 12 January 2018. The developer will inform applicants their eligibility assessment results on or before 29 January 2018. Eligible applicants can select unit of their own choice according to the Sales Arrangements when properties under this program are available for sale. For general enquiries, members of the public are welcomed to call (852) 2844 3284 during office hours (9am-6pm) on weekdays or email to newgenfirsthome@nwd.com.hk