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According to the 23 authorised institutions (AIs) which participate in the HKMA's monthly survey of residential mortgage lending, new mortgage loans drawn down during November increased by 8.9% to HK$10.5 billion.
New loans approved increased by one third to HK$15.7 billion. The increase was across the board in both number and value terms. The number of new applications increased by 22.9%. Primary market transactions rose by HK$1.8 billion (+62.0%), secondary market transactions by HK$1.3 billion (+21.0%) and refinancing loans by HK$0.8 billion (+29.3%).
The proportion of new loans approved at more than 2.5% below the best lending rate decreased to 54.8% from 58.1% in October, while the proportion of new approvals priced with reference to rates other than the best lending rate or fixed rates increased to 40.3% from 34.8% over the same period. The increase was mainly attributable to HIBOR-based loans*.
The outstanding value of mortgage loans was largely unchanged at HK$526.2 billion.
The mortgage delinquency ratio edged down to 0.19% from 0.21% in October. With the rescheduled loan ratio remaining unchanged at 0.28%, the combined ratio improved to 0.47% from 0.49% a month earlier.
* Mortgage loans priced with reference to Hong Kong Interbank Offered Rates. The precise terms of these loans vary between AIs, with some subject to an interest rate cap with reference to their own prime rates, while others may switch to another reference rate at some point during the life of the loan.
Ends/Thursday, December 21, 2006
Issued at HKT 16:30
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