Residential mortgage loans in negative equity June quarter 2013

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26 Jul 2013

Residential mortgage loans in negative equity June quarter 2013

The Hong Kong Monetary Authority announced today the results of its latest survey on residential mortgage loans (RMLs) in negative equity1

At end-June 2013, the estimated number of RMLs in negative equity was 27 cases2.  This was the first time surveyed authorized institutions reported negative equity cases since end-June 2012. These cases were mainly related to staff housing loans, which generally have higher loan-to-value ratio.  

At end-June 2013, the aggregate value of RMLs in negative equity amounted to HK$111 million and the unsecured portion of these loans amounted to HK$2 million.

Since the first quarter of 2011, there have been no RMLs in negative equity with delinquencies of more than three months. 

Annex

Hong Kong Monetary Authority
26 July 2013



1 The mortgage portfolio of the surveyed authorized institutions represents about 99% of the industry total.  The survey results have been extrapolated to approximate the position of the banking sector as a whole. 

2 The figures derived from the survey relate only to RMLs provided by authorized institutions on the basis of first mortgages and which the reporting institution knows to be in negative equity (i.e. the outstanding loan amount with the reporting institution exceeds the current market value of the mortgaged property).  Not included in these figures are some RMLs associated with co-financing schemes which would be in negative equity if the second mortgages were taken into account.  The extent to which such RMLs are in negative equity is not known because authorized institutions do not maintain records on the outstanding balances of the second mortgages. 

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Last revision date : 26 July 2013