MReferral: In September, the number and amount of newly approved mortgage insurance cases in Hong Kong were 718 cases and HK$3.825 billion, respectively.

According to the latest data from mReferral Mortgage Brokerage Services' Referral Research Department and The Hong Kong Mortgage Corporation Limited, in September this year, the number and amount of newly approved mortgage insurance scheme loans in Hong Kong were 718 cases and HK$3.825 billion, respectively, down 8.2% and 7.2% month-on-month, marking three consecutive months of decline; the number of cases hit a new low in over 10 years, while the amount hit a new low in over 7.5 years. In September this year, the number and amount of newly drawn mortgage insurance scheme loans were 413 cases and HK$2.304 billion, respectively, down 25.2% and 25.7% month-on-month, with both the number of cases and the amount hitting an average new low in 7 months; the average newly drawn mortgage insurance loan amount was HK$5.58 million, down 0.7% month-on-month. In addition, among newly drawn mortgage insurance cases, primary market properties accounted for 23%, while secondary market properties accounted for 77%. In the first 9 months of this year, the number and amount of newly approved mortgage insurance loans were 9,707 cases and HK$53.101 billion, respectively, down 22.3% and 14.8% year-on-year, hitting new lows for the first 9 months in nearly 11 years and 9 years, respectively. Meanwhile, in the first 9 months, the number and amount of newly drawn mortgage insurance loans were 4,433 cases and HK$23.738 billion, respectively, down 18.1% and 11.2%, with both the number of cases and the amount hitting new lows for the first 9 months in nearly 11 years and 9 years, respectively. Cao Deming, Chief Vice President of mReferral Mortgage Brokerage Services' Referral, said that in August and September, the property market was still in an adjustment phase, which affected mortgage figures. In addition, for all residential properties, the maximum mortgage ratio banks can provide is uniformly set at 70%, so homebuyers do not need to apply for mortgage insurance and can still obtain a mortgage of up to 70%, causing the number of newly approved mortgage insurance cases in September to hit a new low in over 10 years. On the other hand, since the upper limit of banks' mortgage ratios has been relaxed to 70%, among the cases referred through mReferral Mortgage Brokerage Services in September for private residential mortgage applications, as many as 45% of customers borrowed up to the full 70% non-mortgage-insurance mortgage. With mortgage insurance demand falling sharply, it is expected that mortgage insurance figures in the fourth quarter will continue to move sideways at a low level.