A senior mortgage broker said on Monday that a relaxation of mortgage rules announced last week will mostly help buyers who are just short of having the cash for a down payment, or those looking to upgrade to a more expensive flat.

Eric Tso, of mReferral Mortgage Brokerage Services, made the comment after the Hong Kong Monetary Authority allowed people buying homes worth up to HK$30 million to borrow a bigger proportion of the price.

Under the new arrangements, self-use residential homebuyers can now borrow up to 70 percent for flats worth below HK$15 million, and 60 percent for homes costing between HK$15 to HK$30 million.

Though Tso said the relaxed rules will ease some potential buyers' financial burden, he stressed borrowers still have to show that they can afford their repayments.

"From calculations, your income still needs to be at a certain level to afford a mortgage. If you are considering a move, they will still consider your income in relation to the stress test so that it is comfortable to maintain a mortgage," he said.

The founder of a property agency also welcomed the relaxation of mortgage rules, saying it can help people achieve their dreams of becoming first-time home owners.

However, Shih Wing-ching, from Centaline, said fear of a market crash could hold back some potential buyers.

"There are many people who still prefer to rent for now. The benefit of renting is that you only have to commit for up to two years. But if you choose to buy, it could be a financial gamble depending on the property market’s fluctuation. Since people are extremely cautious these days, they prefer to rent," he said.