Residential Mortgage Survey Results for September 2006

Press Releases

25 Oct 2006

Residential Mortgage Survey Results for September 2006

According to the 23 authorized institutions (AIs) which participate in the HKMA's monthly survey of residential mortgage lending, new mortgage loans drawn down during September increased by 15.2% to HK$9.7 billion.

New loans approved by the AIs decreased by 9.1% to HK$11.5 billion. The decline was due to decreases of HK$1.0 billion (-14.9%) in approvals for secondary market transactions and of HK$0.4 billion (-16.2%) in approvals for refinancing. These decreases more than offset the HK$0.3 billion (+11.1%) increase in approvals for primary market transactions. The number of new applications also decreased, by 10.4%.

The proportion of new loans approved at more than 2.5% below the best lending rate decreased to 55.9% from 58.4% in August. By contrast, the proportion of new approvals priced with reference to rates other than the best lending rate or fixed rates increased to 35.9% from 32.8% in August. The increase was mainly attributable to HIBOR-based loans1.

The outstanding value of mortgage loans decreased by 0.1% to HK$526.1 billion.

With the mortgage delinquency ratio and the rescheduled loan ratio remaining unchanged at 0.20% and 0.29% respectively, the combined ratio was steady at 0.49%.

Annex

For further enquiries, please contact:
Ying-ying Cheng, Manager (Press), at 2878 1687 or
Thomas Chan, Senior Manager (Press), at 2878 1480

Hong Kong Monetary Authority
25 October 2006

 

1Mortgage loans priced with reference to Hong Kong Interbank Offered Rates. The precise terms of these loans vary between AIs, with some subject to an interest rate cap with reference to their own prime rates, while others may switch to another reference rate at some point during the life of the loan.

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Last revision date : 25 October 2006