The Hong Kong Monetary Authority published the results of its survey on residential mortgage loans (RMLs) in negative equity at end-December 2024, showing a decline in both the number and aggregate value of affected loans, while the three-month delinquency ratio remained low. Estimated negative equity RMLs fell to 38,389 cases from 40,713 at end-September 2024, with the aggregate value decreasing to HKD 195.1 billion from HKD 207.5 billion. The unsecured portion declined to HKD 14.5 billion from HKD 15.8 billion, and the three-month delinquency ratio edged up to 0.15% from 0.13%. The cases were mainly related to 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 that reporting institutions know to be in negative equity and excludes co-financing schemes where second mortgages are not reflected in authorized institutions’ records. Surveyed institutions account for about 99% of industry mortgage portfolios, and results were extrapolated to the banking sector as a whole.
Hong Kong Monetary Authority 2025-01-28
Hong Kong Monetary Authority reports negative equity mortgage cases fall to 38,389 at end-December 2024
The Hong Kong Monetary Authority reported a decline in residential mortgage loans (RMLs) in negative equity to 38,389 cases, with the aggregate value decreasing to HKD 195.1 billion by end-December 2024. The unsecured portion fell to HKD 14.5 billion, while the three-month delinquency ratio slightly increased to 0.15%. The survey, covering 99% of industry mortgage portfolios, highlighted that most cases involved bank staff housing loans or RMLs under the mortgage insurance programme.