Meridians: The number and amount of new mortgage insurance policies taken out in Hong Kong in the first half of the year both reached a near-ten-year low compared to the same period.

According to the latest data from the mReferral Mortgage Brokerage Services Referral Research Department and Hong Kong Mortgage Securities Limited, in June 2026, the number of new mortgage insurance plan loans and the amount were 1445 cases and 83.84 billion Hong Kong dollars, respectively. This is an increase from May's 1073 cases and 60.99 billion Hong Kong dollars, with an increase of 372 cases (34.7%) and 22.85 billion Hong Kong dollars (37.5%) in number and amount respectively. The number of cases reached a new high in 11 months, and the amount reached a new high in 23 months. In June 2026, the number of new drawdown mortgage insurance plan loans and the amount were 528 cases and 27.96 billion Hong Kong dollars, respectively. This is an increase from May's 471 cases and 25 billion Hong Kong dollars, with an increase of 57 cases (12.1%) and 2.96 billion Hong Kong dollars (11.8%) in number and amount respectively. The number of cases reached a new high in 3 months; the average new drawdown mortgage amount was 5.3 million Hong Kong dollars, a decrease of 10,000 Hong Kong dollars (0.2%) from the previous month; in addition, in the new drawdown mortgage cases, the percentage of new properties accounted for by first-hand properties was 20%, while second-hand properties accounted for 80%. Cao Deming, the Chief Vice President of mReferral Mortgage Brokerage Services, stated that residential trading was brisk in May, combined with large-scale new projects attracting buyers, leading to a rebound in mortgage insurance numbers in June. However, with trading in the property market slowing down in recent months, it is expected that mortgage insurance numbers will follow a downward trend in the third quarter. Comparing the first half of this year, the number of new mortgage insurance plan loans and the amount in the first half of this year were 7081 cases and 388.8 billion Hong Kong dollars, a decrease from 8332 cases and 415.62 billion Hong Kong dollars in the same period last year, with a decrease of 1251 cases (15%) and 26.82 billion Hong Kong dollars (6.5%) in number and amount respectively, reaching the lowest in nearly 10 years and 7 years in the first half of the year. The number of new drawdown mortgage insurance plan loans and the amount in the first half of this year were 2957 cases and 155.24 billion Hong Kong dollars, a decrease from 3483 cases and 174.57 billion Hong Kong dollars in the same period last year, with a decrease of 526 cases (15.1%) and 19.33 billion Hong Kong dollars (11.1%) in number and amount respectively, reaching the lowest in nearly 10 years in the first half of the year. Cao Deming mentioned that the authorities had relaxed the maximum mortgage loan-to-value ratio in the early years. Currently, for all residential properties, banks can provide a uniform maximum mortgage loan-to-value ratio of 70%, which means that property buyers can obtain up to 70% mortgage without applying for mortgage insurance, resulting in a continuous decline in demand for mortgage insurance. With a significant reduction in demand for mortgage insurance, it is expected that the overall mortgage insurance numbers will continue to remain low in the second half of the year.