Key Information

inSight
Speeches
Speeches by Speaker
Norman T.L. Chan
Peter Pang
Eddie Yue
Arthur Yuen
Zeti Akhtar Aziz
Raymond Li
Edmond Lau
Esmond Lee
Meena Datwani
Vincent W.S. Lee
James Lau
Joseph Yam
Y K Choi
William Ryback
David Carse
Tony Latter
Andrew Sheng
Hans Genberg
Simon Topping
Michael Taylor
The Honourable Donald Tsang
Chen Yuan
Dai Xianglong
Don Brash
Jaime Caruana
Andrew Crockett
Mario Draghi
David Eldon
Stanley Fischer
Timothy F. Geithner
Stephen Grenville
Kenneth G. Lay
William McDonough
Ernest Patrikis
Glenn Stevens
Jean-Claude Trichet
Tarisa Watanagase
Zeti Akhtar Aziz
Carmen Chu
Alan Au
Press Releases
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
Press Releases by Category
Bogus Voice Message Phone Calls
Banking in Hong Kong
Fraudulent Websites, E-mails and Telephone System, and other fraud cases
Granting of Banking Licences
Exchange Fund
Table of Multiples of Notes and Payments for Allotted Amount under non-competitive tender
Table of Multiples of Notes and Payments of Application Amount under non-competitive tender
Tender of Exchange Fund Bills and Notes
Tender Results of Exchange Fund Bills and Notes
Tentative Issuance Schedule for Exchange Fund Bills and Notes
Appointments and Departures
HKMA Pay Review
HKMA Publications
Speeches
The Hong Kong Mortgage Corporation
Hong Kong Note Printing Limited
Hong Kong Institute for Monetary Research
Exchange Fund Investment Limited
Others
Hong Kong Financial Infrastructure
International Relations
Investment Products Related to Lehman Brothers
Monetary Policy
Notes and Coins
Renminbi business
Credit Card Lending Survey
Monetary Statistics
Residential Mortgage Survey
Year 2000
Others
Guidelines and Circulars
Guidelines
Circulars
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
515.5995

Press Releases

Survey on residential mortgage loans in negative equity March quarter

The Hong Kong Monetary Authority announced today the results of the latest survey on residential mortgage loans (RMLs) in negative equity conducted with a number of banks active in mortgage financing.

From the information obtained from the survey, it is estimated that the total number of RMLs in negative equity in the banking sector was about 67,500 or 14% of total mortgage borrowers at end-March, with an aggregate value of about HK$115 billion, or 21% of total outstanding RMLs. These compared with 73,000 cases valued at HK$125 billion at end-December 2001. The decline in number of RMLs in negative equity in the first quarter is due to a number of factors: the stabilisation of property prices, continued instalment repayments by homeowners, pay-downs by customers who sought refinancing or restructuring of their loans and some disposals of repossessed properties.

The survey indicated that 58% of negative equity homeowners were now being charged at below the best lending rate (BLR), compared to 56% at end-December. The average interest rate being charged to negative equity homeowners reduced by another 3 basis points to 0.60% below BLR from that in the December survey.

In addition to the 2,500 RMLs in negative equity that were refinanced or restructured by the banks in the fourth quarter of 2001, another 2,300 were estimated to have been restructured or refinanced in the first quarter of 2002. About 60% of the loans restructured had interest rates reduced.

The average loan-to-value ratio of the aggregate portfolio of RMLs in negative equity remained unchanged at around 125% at end-March.

The figures derived from the survey relate only to RMLs provided by the banks on the basis of first mortgages and which the banks know to be in negative equity. Not included in these figures are some 63,700 RMLs associated with government-funded co-financing schemes and another 21,900 RMLs associated with private sector co-financing schemes. The extent to which such RMLs are in negative equity, taking into account the second mortgage, is not known because banks do not maintain records on the outstanding balances of the second mortgages.

For further enquiries, please contact:

Thomas Chan, Senior Manager (Press), at 2878 1480 or
Sylvia Yip, Manager (Press), at 2878 1687

Hong Kong Monetary Authority
3 June 2002

Annex

Interest rate breakdown of residential mortgage loans in negative equity

 

Number of casesOutstanding balance

 

As at 31 March 2002As at 31 December 2001As at 31 March 2002As at 31 December 2001

 

Number%Number%HK$ billionHK$ billion
  1. BLR + 2% or above
135 0.2 150 0.2 0.2 0.3

 

  • BLR + 1% to below BLR + 2%
2,230 3.3 2,250 3.1 3.3 3.5
  • Above BLR to below BLR + 1%
15,400 22.8 17,200 23.6 26.0 29.6
  • BLR
7,630 11.3 10,300 14.1 14.1 16.8
  • Below BLR to BLR - 1%
11,200 16.6 12,000 16.4 18.7 20.4
  • Below BLR - 1%
27,600 40.9 28,800 39.4 48.7 51.0
  • Others (e.g. fixed rate)
3,305 4.9 2,300 3.2 4.0 3.4

 

67,500 100 73,000 100 115.0 125.0

BLR = Best lending rate

Last revision date: 1 August 2011
ABOUT THE HKMA
The HKMA
Tender Invitations
Careers@HKMA
Legislative Council Issues
Links
The HKMA Information Centre
KEY FUNCTIONS
Monetary Stability
Banking Stability
International Financial Centre
Exchange Fund
PUBLICATIONS & RESEARCH
Annual Report
Half-Yearly Monetary & Financial Stability Report
Quarterly Bulletin
HKMA Background Briefs
Reference Materials
Research
MARKET DATA & STATISTICS
CMU Bond Price Bulletin
Economic & Financial Data for Hong Kong
Monthly Statistical Bulletin
Monetary Statistics
KEY INFORMATION
Press Releases
Speeches
Guidelines & Circulars
Forthcoming Events
inSight
OTHER INFORMATION
Information in Other Languages (Bahasa Indonesia, हिन्दी, नेपाली, ਪੰਜਾਬੀ, Tagalog, ไทย, اردو)
Account Opening
Consumer Corner
Consumer Education Programme
Complaints about Banks
Complaints about SVF Licensees
Internet Banking
Fraudulent Bank Websites, Phishing E-mails and Similar Scams
Be Careful of Bogus Phone Calls and SMS Messages
Authenticate the Callers and Bank Hotline Numbers
Register of AIs & LROs
Register of Securities Staff of AIs
Register of SVF Licensees
Investment Products Related to Lehman Brothers
Photo Gallery