New mortgage lending increased for the third consecutive month
in May, according to the HKMA's monthly survey of residential
mortgage lending.
Gross new loans increased by 15.8% to HK$10.2 billion. The
average size remained unchanged at HK$1.28 million.
New loans approved increased by 10.0% to HK$12.2 billion, with
increases in approvals for both primary and secondary market
transactions, which accounted for 52.6% and 35.2% of total new
loans approved respectively. Loans approved but not yet drawn
amounted to HK$8.0 billion.
The average loan-to-value ratio fell to 66.1% and the
contractual life of new loans approved shortened to 229 months.
Ninety nine percent of new loans related to owner-occupied
properties.
On the pricing front, 90.5% of new loans approved were priced at
more than 2% below the best lending rate, up further from 89.7% in
April. The proportion of new loans priced at more than 2.5% below
the best lending rate also increased, to 23.0% from 16.7%.
The amount of outstanding mortgage loans increased by 0.5%.
The mortgage delinquency ratio (measured by the ratio of loans
overdue for more than 3 months to total outstanding loans)
decreased to 1.14% from 1.16% at the end of April, while the
rescheduled loan ratio (measured by the ratio of rescheduled loans
to total outstanding loans) increased to 0.44% from 0.41%.
"Recent trends continued in May," said Mr David Carse, Deputy
Chief Executive of the HKMA, "with continued growth in mortgage
lending, and continued downward pressure on pricing. Asset quality
of the mortgage portfolio remained stable."
Gross loans for the purchase of properties in Mainland China
decreased to HK$92 million from HK$115 million in April. The amount
of outstanding loans decreased by HK$126 million to HK$5.9
billion.
For further enquiries, please contact:
Jasmin Fung, Manager (Press), at 2878 8246 or
Thomas Chan, Senior Manager (Press), at 2878 1480
Hong Kong Monetary Authority
27 June 2002
Annex
Residential Mortgage Survey
Notes to Annex
- The Residential Mortgage Survey is a
continuous monthly survey covering 28 authorized institutions in
the banking industry.
- Residential mortgage loans in this survey are
loans (including refinancing loans) to private individuals for the
purchase of residential properties, including uncompleted units,
but other than those properties under the Home Ownership Scheme,
Private Sector Participation Scheme and Tenants Purchase
Scheme.
- Gross new loans made are new mortgage loans
drawn down during the surveyed month.
- New loans approved are mortgage loans approved
during the surveyed month. The loans can either be drawn down in
the same month or in the following months. Loans that are approved
but not yet drawn, which have implications for the amount of gross
new loans made in the following months, are shown under the item
"New loans approved during month but not yet drawn".
- Delinquency ratio is measured by a ratio of
total amount of overdue loans to total outstanding loans.
- Rescheduled loan ratio is measured by a ratio
of total amount of rescheduled loans to total outstanding
loans.
- Co-financing schemes refer to those schemes
that involve provision of top-up finance by property developer(s)
or other co-financier(s) in addition to mortgage loans advanced by
authorized institutions. For loans associated with co-financing
schemes, only the portion of loans advanced by authorized
institutions is included in this survey.
- Average loan-to-value ratio and average contractual
life are average figures weighted by the amount of new
loans approved during the surveyed month by individual authorized
institutions.
