Hong Kong Monetary Authority: The number of negative equity residential mortgage loans at the end of the first quarter of 2026 was 11,424, a decrease of 46.4% compared to the previous period.

On April 30, the Hong Kong Monetary Authority released the latest survey results on negative equity residential mortgage loans at the end of the first quarter of 2026. The number of negative equity residential mortgage loans at the end of the first quarter of 2026 was 11,424, a decrease of 46.4% from 21,304 at the end of the fourth quarter of 2025. These cases mainly involve housing mortgage loans for bank employees or mortgage insurance plan loans, and the loan-to-value ratio for these types of loans is generally higher. The amount involved in negative equity residential mortgage loans decreased by 47.8% from HK$105.4 billion at the end of the fourth quarter of 2025 to HK$55 billion at the end of the first quarter of 2026. The amount of unsecured portion in negative equity residential mortgage loans decreased from HK$6.2 billion at the end of the fourth quarter of 2025 to HK$2.8 billion at the end of the first quarter of 2026. The ratio of negative equity residential mortgage loans overdue for more than three months at the end of the first quarter of 2026 was 0.5%, compared to 0.31% at the end of the fourth quarter of 2025, still maintaining a low level. It is important to note that the numbers from this survey only involve first mortgages provided by banks that are known to be in negative equity (i.e. the outstanding loan amount exceeds the current market value of the mortgaged property), and do not include second mortgages. The total amount of residential mortgage loans considered negative equity loans, including second mortgages, cannot be determined as banks do not have data on outstanding loans for second mortgages. The mortgage loan amounts from accredited institutions account for approximately 99% of the total mortgage loans in the entire banking system. The survey results are extrapolated to estimate the situation of negative equity mortgage loans in the entire banking system.