Hong Kong finance firm comes up with loan scheme targeting Gen Z ease their way into a world of soaring rents
- United Asia Finance’s “New Renter’s Loan” is targeted at renters of new flats
- Scheme provides individuals with a maximum loan of HK$200,000 to ease their initial financial burden
Finance companies are targeting Hong Kong’s young renters who are not only finding it difficult to step on the property ladder in the world’s most expensive real estate market but also keep up with soaring rents.
United Asia Finance (UA), one of the city’s largest money lenders, said on Wednesday that it would offer loans of up to 10 times the monthly rent or a maximum of HK$200,000 to ease renters’ financial burden that can accounts for up to 50 per cent of an individual’s monthly income.
UA did not define the age group of its target audience, but Victor Wong, chief executive of Ego Finance, said that such loans are usually targeted at Generation Z renters – below the age of 30.
The “New Renter’s Loan” is targeted at renters of new flats. It comes after Hong Kong rents reached an all-time high in October 2018, according to data from the Rating and Valuation Department’s residential rental index. Rents for units smaller than 430 sq ft have jumped 35 per cent between 2013 and 2018, while sale prices have surged 63 per cent during the same period, the data showed.
Applicants only need their Hong Kong identity card and a rental contract signed within the last three months.
Borrowers will be charged a monthly interest rate of as low as 1 per cent.