Hong Kong Monetary Authority has released the results of its January 2025 residential mortgage survey, revealing a significant increase in mortgage applications. Hong Kong Monetary Authority reported that mortgage applications increased by 3.3% compared to the previous month.

Mortgage Loan Approvals & Drawdowns

Despite an increase in mortgage loan applications in January 2025, the total amount of loans approved fell by 2.1% compared with December 2024. This amounted to HK$25billion. In this total, the loans for primary-market transactions grew by 15.5% and reached HK$10 Billion. Loans for secondary market transactions fell by 11.7%, to HK$12.2 Billion, while refinancing loan amounts dropped by 8.8%, to HK$2.9 Billion.

Mortgage loans in January 2025, however, experienced a significant increase, rising by 17.6% compared to the previous month, reaching HK$15.6billion.

Rates of interest and outstanding balances

The report also revealed a change in pricing for new mortgages. The percentage of mortgage loans priced using the Hong Kong Interbank Offer Rate (HIBOR), which was 91.3% at December 2024, increased to 93% by January 2025. During the same time period, the ratio of best lending rate loans decreased from 4,1% to 3,4%.

At the end of January 2020, outstanding mortgage loans will reach HK$1,872.9billion. This is a slight increase of 0.1% from month to month.

Ratios of Delinquency, Rescheduled Loans and Late Payments

The mortgage delinquency rate remained at a low 0.12%. Rescheduled loans remained at a steady 0%. This indicates despite fluctuations in loan approvals, and drawdowns, that the financial climate is stable.

The HKMA findings give a comprehensive view of the state of the Hong Kong mortgage market, highlighting both its challenges and positive developments.

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