Meridians: In May, the number and amount of new mortgage insurance applications in Hong Kong dropped by more than 10%, reaching a 3-month low.

According to the latest data from mReferral Mortgage Brokerage Services Referral Research Department and Hong Kong Mortgage Securities Limited, in May 2026, the number of new mortgage insurance plan loans and the amount were 1073 loans and 60.99 billion Hong Kong dollars (HKD), compared to 1104 loans and 58.88 billion HKD in April, a decrease of 31 loans, hitting a new low in 3 months, while the amount increased by 2.11 billion HKD. In May 2026, the number of new drawdowns of mortgage insurance plan loans and the amount were 471 loans and 25 billion HKD, compared to 526 loans and 28.05 billion HKD in April, a decrease of 55 loans and 3.05 billion HKD in both number and amount, setting a new low in 3 months; the average new drawdown loan amount was 5.31 million HKD, a decrease of 20,000 HKD compared to the previous month; furthermore, among the new drawdown cases, 29% were for primary properties and 71% for secondary properties. Comparing the first 5 months, the number of new mortgage loans and the amount for the first 5 months of this year were 5636 loans and 304.96 billion HKD, a decrease of 1274 loans and 41.75 billion HKD from the same period last year, setting new lows for the first 5 months in nearly 10 years and 9 years, respectively. The number of new drawdown loans and the amount for the first 5 months were 2429 loans and 127.28 billion HKD, a decrease of 352 loans and 14.6 billion HKD from the same period last year, setting new lows for the first 5 months in nearly 10 years and 7 years, respectively. Cao Deming, Chief Vice President of mReferral Mortgage Brokerage Services Referral, stated that the property market is stable, but with the recent relaxation of mortgage loan-to-value ratios by the government, banks can now offer a uniform maximum loan-to-value ratio of 70% for all residential properties, leading to a continuous decline in demand for mortgage insurance. In May, nearly half of the cases applying for residential mortgages through mReferral Mortgage Brokerage Services Referral borrowed up to 70% of the loan. On the other hand, with an increase in investment activity this year, there has been a significant increase in large-scale market transactions, and these investment buyers are not opting for mortgage insurance. With a significant decrease in demand for mortgage insurance, it is expected that mortgage insurance figures will continue to remain low.