The Hong Kong Monetary Authority announced that at the end of March 2025, there were 40,741 residential mortgage loans ("RMLs") in negative equity, an increase from 38,389 cases at the end of December 2024. The total value of these RMLs reached HK$205.9 billion, up from HK$195.1 billion, and the unsecured portion increased to HK$16.4 billion. The delinquency ratio remained low at 0.17%. The survey covers 99% of the industry's total RMLs.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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The Hong Kong Monetary Authority ("HKMA") reported on April 30, 2025, the findings of its survey on residential mortgage loans ("RMLs") in negative equity at the end of March 2025. The survey identified a total of 40,741 cases of RMLs in negative equity, an increase of 6% compared to the end of December 2024, when there were 38,389 such cases. The primary contributors to this increase were bank staff housing loans and RMLs under the mortgage insurance program, which typically feature higher loan-to-value ratios. The aggregate value of RMLs in negative equity stood at HK$205.9 billion at the end of March 2025, compared to HK$195.1 billion at the end of December 2024.
The unsecured portion of these loans rose to HK$16.4 billion at the end of March 2025, representing an increase of 12% from the HK$14.5 billion reported at the end of December 2024. The three-month delinquency ratio for RMLs in negative equity remained low at 0.17% at the end of March 2025, slightly up from 0.15% at the end of December 2024.
It is critical to note that the survey results pertain exclusively to RMLs provided by authorized institutions, based on first mortgages, and known to be in negative equity. The data does not include RMLs associated with co-financing schemes. The survey covered approximately 99% of the industry's total mortgage portfolios. The findings were extrapolated to provide a comprehensive view of the banking sector's position.
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