Cheung Wan Mortgage: Hong Kong's new mortgage loans approved in November hit a 7-year low in terms of quantity and a 6-year low in terms of amount.

Wang Meifeng, Managing Director of Zhongyuan Mortgage, stated that according to the latest data released by Hong Kong mortgage insurance companies, the number of new mortgage insurance policies taken out in November 2025 decreased by 10.1% to 560 policies compared to the previous month, with the amount also falling by 9.9% to 28 billion Hong Kong dollars. During the same period, the number of new approved mortgage insurance policies decreased by 8.6% to 1068 policies compared to the previous month, falling to the lowest level in over seven years (86 months) since December 2018. The amount decreased by 6.7% to 56 billion dollars, also dropping to the lowest level in over six years (74 months) since September to October 2019. The decrease in numbers is mainly due to the full relaxation of loan-to-value ratios, reducing the demand for high LTV mortgage insurance among property buyers; coupled with an increase in the proportion of investors entering the market, who are not typical mortgage users, further keeping the insurance numbers at low levels. While the overall property market has improved in the fourth quarter, the usage of mortgage insurance remains at a low level. Wang Meifeng analyzed that with mortgage policies now fully relaxed to 70% LTV, buyers who can afford a down payment as low as 30% no longer need mortgage insurance, reducing their reliance on high LTV mortgage insurance significantly. Data shows that the usage of mortgage insurance has dropped from over 30% before the relaxation to an average of around 15% this year. Additionally, with the relaxation of investment immigration requirements and increasing rental yields, the proportion of investors and long-term rental buyers entering the market has increased. As investment properties are not eligible for high LTV mortgage insurance, this also contributes to the low penetration rate of mortgage insurance in the overall mortgage market. Overall, data from the first 11 months of 2025 shows that there were 6,594 new mortgage insurance policies taken out, a decrease of 25.2% compared to the same period in 2024; with a total amount of 327 billion dollars, a decrease of 27.7% year-on-year. As for new approved mortgage insurance policies, there were 14,726 policies, a decrease of 23.9% compared to the same period last year; involving an amount of 740 billion dollars, a decrease of 26.8% year-on-year.