Meridians: Significant decrease in demand for insurance is expected this year, and the insurance figure in Hong Kong is forecasted to continue to remain at a low level.

According to the latest data from the mReferral Mortgage Brokerage Services' Referral Research Department and Hong Kong Mortgage Securities Limited, in January 2026, the number of new mortgage insurance plan loans and the amount were 1,100 and 59.4 billion Hong Kong dollars, respectively. This is an increase of 60 loans (5.8%) and 3.87 billion Hong Kong dollars (7%) from December 2025, after consecutive declines for 5 months. In January 2026, the number of new mortgage insurance plan loans and the amount were 460 and 23.56 billion Hong Kong dollars, respectively. This is a decrease of 44 loans (8.7%) and 1.8 billion Hong Kong dollars (7.1%) from December 2025, after consecutive declines for 4 months. The number of loans hit a new low in over 7 years (86 months) and the amount hit a new low in over 1 year (14 months). The average amount of new mortgage insurance plan loans was 5.12 million Hong Kong dollars, an increase of 90,000 Hong Kong dollars (1.8%) per month, reaching a 9-month high. Additionally, in new mortgage insurance plan loans, the percentage of first-hand properties was 26% and second-hand properties was 74%, reaching a 2-year high. Comparing the first month, in January this year, the number and amount of new mortgage insurance plan loans decreased by 181 loans (14.1%) and 7.26 billion Hong Kong dollars (10.9%) compared to the same period last year when there were 1,281 loans and 66.66 billion Hong Kong dollars. The number and amount hit their lowest levels in nearly 10 years and 7 years for the first month. Additionally, the number and amount of new mortgage insurance plan loans in January decreased by 57 loans (11%) and 2.32 billion Hong Kong dollars (9%) compared to the same period last year when there were 517 loans and 25.88 billion Hong Kong dollars. The number and amount hit their lowest levels in nearly 10 years and 7 years for the first month. Cao Deming, Chief Vice President of mReferral Mortgage Brokerage Services, stated that currently, all residential properties in Hong Kong have a unified maximum loan-to-value ratio of 70% from banks. This means that homebuyers do not need to apply for mortgage insurance and can bear up to 70% of the mortgage, leading to a continuous decline in demand for mortgage insurance. On the other hand, the overall investment atmosphere warmed up last year, and there was a significant increase in large-scale transactions in the market. These types of investment buyers also do not choose mortgage insurance. With a significant decrease in demand for mortgage insurance, it is expected that the numbers for mortgage insurance will continue to remain low this year.