Residential Mortgage Survey Results for August 2006

Press Releases

25 Sep 2006

Residential Mortgage Survey Results for August 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 August decreased by 19.1% to HK$8.4 billion.

New loans approved by the AIs increased significantly by 30.6% to HK$12.7 billion. Increases were seen in both number and value terms of all types of approvals. In value terms, primary market transactions rose by HK$1.1 billion (+62.2%), secondary market transactions by HK$0.9 billion (+14.4%) and refinancing loans by HK$0.9 billion (+50.0%). The number of new applications also rose, by 28.2%.

The proportion of new loans approved at more than 2.5% below the best lending rate decreased to 58.4% from 67.4% in July. However, the proportion of new approvals priced with reference to rates other than the best lending rate or fixed rates increased to 32.8% from 18.9% in July. The increase was mainly attributable to HIBOR-based loans1.

The outstanding value of mortgage loans decreased by 0.2% to HK$526.4 billion.

The mortgage delinquency ratio was unchanged at 0.20%. With the rescheduled loan ratio decreasing to 0.29%, the combined ratio improved to 0.49% from 0.50% in July.

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 September 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 September 2006