Banking industry further extends loan repayment grace period for affected individuals of Tai Po Fire

On Mon, 28 Sep 2026 – Announcement of Further Extension to Credit Support Measures for Tai Po Fire Affected Individuals

Following sustained and close engagement between the Hong Kong Monetary Authority ("HKMA") and The Hong Kong Association of Banks ("HKAB") with members of the banking sector regarding the ongoing needs of individuals affected by the Tai Po fire incident, a further extension to existing credit support measures has been announced. In recognition that certain affected residents require additional time to finalise their housing and financial arrangements, the banking industry—having consulted with both HKMA and HKAB—has agreed to maintain and extend the following relief provisions on an ongoing basis.

Extension of Repayment Grace Period

All 28 retail banks operating in Hong Kong shall further extend the repayment grace period (encompassing both principal and interest) for existing mortgage loans, personal loans, credit card facilities, and other analogous borrowing arrangements held by affected individuals. The extension is set at an additional six months, bringing the expiry of such relief to the end of May 2027. This measure is intended to mitigate the immediate financial pressure on affected parties while affording them greater flexibility in effecting long-term housing decisions.

Wang Fuk Court ("WFC") Mortgage Arrangements

In respect of mortgage obligations secured against Wang Fuk Court properties, all WFC mortgagee banks shall continue to render assistance to mortgagors and borrowers who are transferring their property interests to the Hong Kong Special Administrative Region Government. The relevant banking institutions will administer such mortgages on a flexible basis, including extending the repayment grace period (covering principal and interest) under the original mortgage facility until the newly acquired replacement unit is ready for occupation. Affected banks shall also maintain ongoing dialogue with the respective mortgagors and borrowers to ensure an orderly transition into their long-term housing arrangements.

Background and Ongoing Oversight

It is noted that in March 2026, HKMA and HKAB introduced a set of measures designed to support the Government's long-term resettlement programme for WFC residents. Since implementation, the banking industry has been actively liaising with relevant Government departments and other stakeholders to operationalise the various components of the mortgage arrangements going forward. Going ahead, HKMA, HKAB, and the banking sector will continue to monitor the evolving needs of affected residents through established communication channels and shall provide appropriate assistance in a manner that is both empathetic and flexible.