MReferral: Hong Kong property market is in a consolidation phase; October mortgage insurance figures plunge sharply to a new low of more than ten and a half years

According to the latest data from the Referral Research Department of mReferral Mortgage Brokerage Services and The Hong Kong Mortgage Corporation Limited, the number and amount of newly approved Mortgage Insurance Programme (MIP) loans in October 2026 were 701 cases and HK$3.867 billion (HKD, same below), compared with 718 cases and HK$3.825 billion in September, representing a decrease of 17 cases (2.4%) in number, marking four consecutive months of decline and a new low in more than ten and a half years, while the amount increased slightly by HK$42 million (1.1%). In October 2026, the number and amount of newly drawn MIP loans were 245 cases and HK$1.297 billion, compared with 413 cases and HK$2.304 billion in September, representing a decrease of 168 cases (40.7%) and HK$1.007 billion (43.7%) respectively in number and amount. Both the number and amount recorded two consecutive months of decline, with the number hitting a new low in more than ten and a half years and the amount hitting a new low in ten and a half years; the average newly drawn MIP loan amount was HK$5.29 million, down HK$280,000 (5.1%) month-on-month; additionally, among newly drawn MIP cases, primary properties accounted for 11% and secondary properties accounted for 89%. Comparing the first 10 months, the number and amount of newly approved MIP loans in the first 10 months of this year were 10,408 cases and HK$56.968 billion, compared with 13,658 cases and HK$68.368 billion in the same period last year, representing a decrease of 3,250 cases (23.8%) and HK$11.4 billion (16.7%) respectively, with both the number and amount hitting new lows for the first 10 months in nearly 11 years and 10 years respectively. The number and amount of newly drawn MIP loans in the first 10 months were 4,678 cases and HK$25.035 billion, compared with 6,034 cases and HK$29.853 billion in the same period last year, representing a decrease of 1,356 cases (22.5%) and HK$4.818 billion (16.1%) respectively, with both the number and amount hitting new lows for the first 10 months in nearly 11 years and 10 years respectively. Cao Deming, Chief Vice President of the Referral Department at mReferral Mortgage Brokerage Services, said that the property market is in a consolidation phase, which has affected mortgage application figures. In addition, with the maximum loan-to-value (LTV) ratio that banks can offer now uniformly set at 70% for all residential properties, homebuyers can obtain a mortgage of up to 70% without applying for mortgage insurance, causing MIP figures to plunge sharply in October to a new low in more than ten and a half years. As the bank mortgage LTV ceiling has been relaxed to 70%, among the cases referred through mReferral Mortgage Brokerage Services for private residential mortgage applications in October, as many as 50% of customers borrowed up to the full 70% non-MIP mortgage. With MIP demand significantly reduced, it is expected that MIP figures will continue to move sideways at low levels in the fourth quarter.