The Hong Kong Monetary Authority published the results of its survey of residential mortgage loans (RMLs) in negative equity at end-June 2025, indicating a decrease in both the number of cases and the total value of loans in negative equity across the banking sector, while delinquency remained low. The estimated number of RMLs in negative equity fell to 37,806 from 40,741 at end-March 2025. The aggregate value declined to HKD 190.2 billion from HKD 205.9 billion, and the unsecured portion decreased to HKD 14.3 billion from HKD 16.4 billion. The three-month delinquency ratio was 0.21%, compared with 0.17% at end-March 2025. The cases were mainly associated with bank staff housing loans or RMLs under the mortgage insurance programme, which generally have higher loan-to-value ratios. The survey covers first-mortgage RMLs provided by authorized institutions where the reporting institution knows the loan is in negative equity, and it excludes loans under co-financing schemes where negative equity would arise when second mortgages are taken into account. Surveyed mortgage portfolios represent about 99% of the industry total and results were extrapolated to estimate the position for the banking sector as a whole.
Hong Kong Monetary Authority 2025-07-31
Hong Kong Monetary Authority reports decline in negative equity residential mortgage loans at end-June 2025
The Hong Kong Monetary Authority reported a decrease in residential mortgage loans (RMLs) in negative equity, with cases falling to 37,806 and the total value declining to HKD 190.2 billion as of end-June 2025. The unsecured portion also decreased, while the three-month delinquency ratio rose slightly to 0.21%. The survey, covering 99% of the industry, highlighted that most cases involved bank staff housing loans or RMLs under the mortgage insurance program.