New mortgage loans drawn down in Hong Kong totalled HK$24 billion ($3.1 billion) in June, down 9.4 percent from a month earlier, Hong Kong Monetary Authority (HKMA) data showed.
The value of new mortgage loans approved in June declined by 16 percent from the previous month to HK$26.6 billion, the HKMA said.
Loan approvals for new property in June decreased by HK$1.9 billion or 33.7 percent from May, and loan demand for mortgages on existing properties dropped HK$2.2 billion or 11 percent. Approvals for refinancing loans fell HK$900 million, or 16.8 percent, from May.
The HKMA said the fall in new loan applications in June reflected the lower transaction volume following the latest round of tightening of the underwriting standards of mortgage lending introduced on June 10.
Following is a summary of data from the authority for June compared with May:
– The number of new mortgage applications fell by 30.3 percent to 11,913 cases against the previous month’s 17,084 cases.
– The outstanding value of mortgage loans rose 1 percent to HK$788.2 billion.
– The proportion of new mortgage loans priced with reference to Hong Kong interbank offered rates (HIBOR) decreased to 79.9 percent from 87.2 percent in May, but new mortgage loans approved in June priced with reference to best lending rates rose to 18.6 percent from the previous month’s 11.7 percent.
– The mortgage delinquency ratio and the re-scheduled loan ratio were steady at 0.01 percent and 0.03 percent, respectively.
Category: Hong Kong