Advertisements

Hong Kong Mortgage Insurance Reaches 10-Month High Amid Market Easing

by Celia

In April, mortgage insurance for residential properties in Hong Kong surged to its highest level in ten months, driven by increased transactions following the relaxation of market restrictions.

Figures released by mortgage broker mReferral show that newly approved mortgage insurance saw a substantial increase of 53% to HK$13.71 billion in value, with applications rising by 47% to 2,613 compared to February. These numbers represent the highest level since June 2023, when HK$16.07 billion was approved from 2,847 cases.

Advertisements

The upswing in mortgage insurance was fueled by a significant rise in new and second-hand home sales, which climbed 115% month-over-month to 8,551 units in April, according to the latest data from the Land Registry.

Advertisements
Advertisements

Rising Mortgage Approvals

A report by the South China Morning Post (SCMP) highlights that relaxed mortgage financing rules have contributed to the surge in approvals. Homes valued under HK$30 million are now eligible for 70% financing, up from the previous 60% for properties priced between HK$15 million and HK$30 million.

However, despite the recent increase in mortgage approvals, figures remain below last year’s levels. For the first four months of 2024, newly approved mortgage insurance totaled HK$43.43 billion across 8,450 cases, compared to HK$96.91 billion and 17,498 cases during the same period the previous year.

Tso Tak-ming, chief vice president of mReferral, attributed the rebound in property transactions to the removal of cooling measures. “Property transactions in both the first and second-hand markets have picked up after the withdrawal of all property cooling measures,” he stated, as reported by SCMP. “This has led to a significant increase in demand for mortgages, as the proportion of new buyers in the primary market choosing the immediate payment method for uncompleted residential buildings has increased significantly.”

Advertisements

You may also like

blank

Bedgut is a comprehensive insurance portal. The main columns include commercial insurance, auto insurance, health insurance, home insurance, travel insurance, other insurance, insurance knowledge, insurance news, etc.

[Contact us: [email protected]]

© 2023 Copyright  bedgut.com