Hong Kong's first quarter mortgage insurance policies hit a 10-year low in numbers and a 7-year low in amounts

According to the latest data from the mReferral Mortgage Brokerage Services referral research department and Hong Kong Mortgage Securitization Limited, in March 2026, the number and amount of new mortgage insurance plan loans in Hong Kong were 1325 and 71.26 billion Hong Kong dollars, respectively, compared to 1034 and 54.43 billion Hong Kong dollars in February, an increase of 291 loans (28.1%) and 16.83 billion Hong Kong dollars (30.9%), with the number of loans reaching a new high in 7 months and the amount reaching a new high in 8 months. In March 2026, the number and amount of new mortgage insurance plan loans in Hong Kong were 577 and 29.7 billion Hong Kong dollars, respectively, compared to 394 and 20.95 billion Hong Kong dollars in February, an increase of 183 loans (46.4%) and 8.75 billion Hong Kong dollars (41.8%), marking a rebound after 5 consecutive months of decline, and reaching a new high in 5 months respectively. The average amount of new loans for mortgage insurance was 5.15 million Hong Kong dollars, a decrease of 170,000 Hong Kong dollars (3.2%) compared to the previous month; in addition, in new loan cases, 30% were for new properties and 70% were for existing properties. Comparing the first quarter of this year, the number and amount of new mortgage insurance plan loans were 3459 and 185.09 billion Hong Kong dollars, a decrease of 499 loans (12.6%) and 18.49 billion Hong Kong dollars (9.1%) from the same period last year, reaching a new low for the first quarter in nearly 10 years and 7 years respectively. The number and amount of new mortgage insurance plan loans in the first quarter were 1431 and 74.21 billion Hong Kong dollars, a decrease of 128 loans (8.2%) and 4.93 billion Hong Kong dollars (6.2%) from the same period last year, reaching a new low for the first quarter in nearly 10 years and 7 years respectively. Cao Deming, Executive Vice President of mReferral Mortgage Brokerage Services, stated that although the property market in Hong Kong remained stable and on the rise in the first quarter, the number of mortgage insurance plan loans reached a new low in nearly 10 years, mainly due to the impact of the Hong Kong government's relaxation of the loan-to-value ratios in recent years. Currently, banks can provide a maximum loan-to-value ratio of 70% for all residential properties, meaning homebuyers do not need to apply for mortgage insurance and can bear up to 70% of the mortgage, leading to a continued decline in demand for mortgage insurance. In the first quarter, the proportion of clients applying for a 70% mortgage (non-insurance) through mReferral Mortgage Brokerage Services referral increased compared to the previous year. On the other hand, investment sentiment has increased this year, with a significant increase in large transactions in the market, and these investment buyers are not choosing mortgage insurance. With a significant decrease in demand for mortgage insurance, it is expected that the numbers will continue to remain low in Hong Kong.