Meridians: The new borrowings in Hong Kong in July fell by more than 10% compared to the previous month, with an average amount of HK$4.83 million.

According to the latest data from the mReferral Mortgage Brokerage Services Referral Research Department and Hong Kong Mortgage Insurance Limited, in July, the number of new mortgage insurance plan loans in Hong Kong was 1,532, with a total amount of HK$7.523 billion, an increase of 7.7% and 9.2% respectively compared to June's 1,422 loans and HK$6.891 billion. The number of loans reached a 12-month high and the amount reached an 11-month high. In July, the number of new mortgage insurance plan loans taken out was 629, with a total amount of HK$3.039 billion, a decrease of 10.4% and 7% respectively compared to June's 702 loans and HK$3.269 billion. The average loan amount for new mortgage insurance loans was HK$4.83 million, an increase of HK$170,000 or 3.8% compared to the previous month, reaching a 3-month high. In addition, among new mortgage insurance loans, 38% were for first-hand properties and 62% were for second-hand properties. Comparing the first 7 months of 2025, the number of new mortgage insurance plan loans was 9,864, with a total amount of HK$49.085 billion, a decrease of 29.2% and 32.5% compared to the same period last year, reaching a nearly 9-year low in terms of number of loans and a nearly 6-year low in terms of amount. For the first 7 months of this year, the number of new mortgage insurance loans taken out was 4,112, with a total amount of HK$20.496 billion, a decrease of 35.7% and 37.8% compared to the same period last year, reaching a nearly 9-year low in terms of number of loans and a nearly 6-year low in terms of amount. Tso Tak-ming, Chief Vice President of mReferral Mortgage Brokerage Services Referral, said that the property market has stabilized somewhat, but developers are mainly pushing new properties and remaining units at lower prices, which is affecting the secondary market. This has led to a decrease in the mortgage ratio and borrowing amount for buyers. In addition, last year the Hong Kong government relaxed the maximum loan-to-value ratio, allowing buyers to apply for up to 70% financing without the need for mortgage insurance. With a decrease in demand for mortgage insurance, it is expected that mortgage insurance figures will continue to decrease slightly in the second half of the year.