Keep the Home Ownership Scheme; Let MPF Help with Down Payments

With subsidised-home rebuilding back on the agenda, some want the “My Home Purchase Plan” scrapped to free land for more Home Ownership flats. Century 21 Fortune Properties CEO Alfa Kwok argues the government should firmly reject the idea — and study allowing MPF early withdrawal so members can use their own contributions toward home down payments.

Why shouldn’t the scheme be scrapped?

Flip-flopping would batter the government’s credibility — and the scheme has real merits. Kwok recalls the Chief Executive and housing chief publicly pitching the plan last winter as giving sandwich-class buyers more time to watch the market before committing, reducing the risk of buying at the wrong moment. Reversing course within six months looks like policy made on the wind. The income caps — HK$23,000 single, HK$39,000 household — fit the sandwich class; participants get half their rent subsidised toward the down payment and a five-year window to exercise the purchase subsidy, dodging property-cycle risk — advantages Home Ownership flats lack.

How could MPF help buyers?

Let members tap their own contributions for down payments, or to cut loan sizes and interest. Kwok notes MPF’s narrow investment channels leave it exposed to equity swings, with low or negative returns betraying its founding purpose. Allowing members to use their own contributions toward down payments — or to reduce borrowing and save mortgage interest — would be popular policy. A bigger upfront payment lightens monthly instalments and opens better or larger flats.

What is the catch?

Raiding retirement savings is a double-edged sword. Using MPF for a down payment helps buyers board the ladder but shrinks the retirement pot. The idea echoes the MPFA’s compassionate-withdrawal study, but it is not policy yet. Workers should not bank on money they cannot yet touch when making buying decisions.

To compare charges and returns across MPF funds, visit MPF fund comparison.