The Hong Kong Monetary Authority announced that there were 37,806 residential mortgage loans ("RMLs") in negative equity at the end of June 2025, down from 40,741 at the end of March. The aggregate value of these RMLs decreased to HK$190.2 billion from HK$205.9 billion, with the unsecured portion dropping to HK$14.3 billion from HK$16.4 billion. The three-month delinquency ratio remained at 0.21%.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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The Hong Kong Monetary Authority ("HKMA") released the results of its latest survey on residential mortgage loans ("RMLs") in negative equity at the end of June 2025.
The survey indicated a significant reduction in the number of RMLs in negative equity, with 37,806 cases recorded at the end of June, compared to 40,741 cases in March 2025.
These RMLs in negative equity primarily comprised bank staff housing loans and those under mortgage insurance programs, which generally have a higher loan-to-value ratio.
The aggregate value of RMLs in negative equity also decreased, falling to HK$190.2 billion by the end of June 2025, from HK$205.9 billion at the end of March.
The unsecured portion of these loans declined to HK$14.3 billion at the end of June 2025, compared to HK$16.4 billion in March 2025.
The three-month delinquency ratio for RMLs in negative equity remained stable at 0.21% at the end of June 2025, up slightly from 0.17% in March 2025.
It is critical to note that the figures presented in this survey only cover RMLs provided by authorized institutions, which the reporting institution identifies as being in negative equity. Excluded are RMLs associated with co-financing schemes that would be in negative equity if the second mortgages were considered. The survey results were extrapolated to represent the broader banking sector, with the mortgage portfolios of the surveyed institutions accounting for approximately 99% of the industry total.
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