Group 1 - In January 2026, the number and amount of newly approved mortgage insurance loans increased to 1,100 cases and HKD 5.94 billion, representing a rise of 60 cases (5.8%) and HKD 387 million (7%) compared to December 2025, marking a rebound after five consecutive months of decline [1] - The number and amount of new mortgage insurance loans utilized in January 2026 were 460 cases and HKD 2.356 billion, showing a decrease of 44 cases (8.7%) and HKD 180 million (7.1%) from December 2025, reaching a new low in over seven years for cases and over one year for amount [1] - The average amount of new mortgage insurance loans utilized was HKD 5.12 million, which increased by HKD 90,000 (1.8%) month-on-month, reaching a nine-month high [1] Group 2 - In January 2026, the number and amount of newly approved mortgage insurance loans decreased by 181 cases (14.1%) and HKD 726 million (10.9%) compared to January 2025, marking the lowest figures for the first month in nearly a decade and seven years respectively [2] - The number and amount of new mortgage insurance loans utilized in January 2026 fell by 57 cases (11%) and HKD 232 million (9%) compared to January 2025, also reaching new lows for the first month in nearly a decade and seven years [2] - The Chief Vice President of the mortgage referral company indicated that the uniform cap of 70% for mortgage loans provided by banks for all residential properties has led to a decline in demand for mortgage insurance, as buyers can secure up to 70% without needing insurance [2]

Core Viewpoint - The mortgage insurance market in Hong Kong is experiencing a significant decline in both the number of new applications and the total amount, reaching levels not seen in over seven years, primarily due to relaxed mortgage policies and changing buyer demographics [1][2]. Group 1: Mortgage Insurance Application Trends - In January 2026, the number of new mortgage insurance applications decreased by 8.7% month-on-month to 460, marking a new low since November 2018 [1] - The total amount of new mortgage insurance also fell by 7.1% to HKD 2.36 billion [1] - Although new mortgage insurance approvals increased by 5.8% month-on-month to 1,100, they remain at a seven-year low, with the total amount rising by 7% to HKD 5.94 billion, which is still at a six-and-a-half-year low [1] Group 2: Year-on-Year Comparisons - Compared to January 2025, the number of new mortgage insurance applications in January 2026 decreased by 11%, and the total amount decreased by 9% [1] - New mortgage insurance approvals and amounts also saw year-on-year declines of 14.1% and 10.9%, respectively [1] Group 3: Market Dynamics - The decline in mortgage insurance applications is attributed to the comprehensive relaxation of mortgage ratios, reducing the demand for high-ratio mortgage insurance among homebuyers [1] - An increase in the proportion of investors entering the market, who typically do not require mortgage insurance, has further contributed to the low levels of mortgage insurance applications [1][2] - The usage ratio of mortgage insurance has dropped to 12.1% as of December 2025, down from over 30% prior to the policy relaxation, marking the lowest level since November 2019 [2]

Core Insights - The mortgage insurance market in Hong Kong is experiencing a significant decline in both the number of new applications and the total amount insured, attributed to a decrease in demand for high loan-to-value (LTV) mortgage insurance as LTV ratios have been relaxed [1][2] Group 1: Mortgage Insurance Trends - In November 2025, the number of new mortgage insurance applications fell by 10.1% month-on-month to 560, with the total amount decreasing by 9.9% to HKD 2.8 billion [1] - The number of new mortgage insurance applications for the same period dropped by 8.6% month-on-month to 1,068, marking the lowest level in over seven years, with the total amount down 6.7% to HKD 5.6 billion [1] - The overall mortgage insurance usage ratio has decreased from over 30% before the policy relaxation to an average of about 15% this year [1] Group 2: Market Dynamics - The overall property market showed improved transaction activity in the fourth quarter, but the usage of mortgage insurance remains low [1] - The increase in the proportion of investment buyers, who typically do not require high LTV mortgage insurance, has contributed to the low penetration rate of mortgage insurance in the overall mortgage market [1] - For the first 11 months of 2025, new mortgage insurance applications totaled 6,594, a decline of 25.2% compared to the same period in 2024, with the total amount insured at HKD 32.7 billion, down 27.7% year-on-year [2]

Core Viewpoint - The Hong Kong mortgage market is showing signs of recovery, with an increase in new mortgage insurance applications and amounts, reflecting a rebound in the property market since May 2023 [1] Group 1: Mortgage Insurance Data - In July 2025, the number of new mortgage insurance applications increased by 7.7% month-on-month to 1,532 cases, marking a one-year high [1] - The total amount of new mortgage insurance also rose by 9.2% month-on-month to 7.5 billion HKD, reaching an 11-month high [1] - Conversely, the number of new mortgage insurance utilizations decreased by 10.4% month-on-month to 629 cases, with the amount dropping by 7% to 3 billion HKD, reflecting a lag in the market's response to previous downturns [1] Group 2: Average Mortgage Amount and Market Factors - The average mortgage amount for new applications slightly decreased from 4.66 million HKD in June to 4.60 million HKD in July, attributed to a policy that exempted stamp duty for properties below 4 million HKD, leading to a higher proportion of lower-priced properties in the market [1] - Positive factors for the Hong Kong property market have emerged since the second quarter of this year, including a decline in interest rates and an increase in rental prices, which have eased the financial burden of homeownership [1] - The improved economic growth and rising market confidence are expected to sustain the momentum in the property market, supporting future mortgage and insurance figures [1]

Core Insights - The number of new mortgage insurance applications in May 2025 increased slightly by 0.3% month-on-month to 612 cases, while the amount decreased by 14.2% to HKD 2.9 billion, indicating a significant drop in average mortgage amounts [1] - In the first five months of 2025, new mortgage insurance applications totaled 2,781, a decrease of 27.9% year-on-year, with a total amount of HKD 14.2 billion, down 28% from the previous year [2] - The relaxation of mortgage policies has led to a reduced reliance on mortgage insurance, with the percentage of new applications relative to total mortgages at 17.6% in May, up from 14.8% in April but significantly lower than over 30% before policy changes [3] Group 1 - The average mortgage amount for new applications fell from HKD 5.54 million in April to HKD 4.73 million in May [1] - The slight increase in the number of new applications in May is attributed to a government tax exemption for properties below HKD 4 million, which boosted transactions in lower-priced properties [1] - The total number of new mortgage insurance applications in May was 1,462, a slight decrease of 1.9% month-on-month, but the amount increased by 0.8% to HKD 7.2 billion, marking a five-month high [2] Group 2 - Factors contributing to the recovery of the property market in May include a drop in HIBOR rates, easing of the US-China trade conflict, and strong sales of new properties [2] - The total number of new mortgage insurance applications issued was 6,910, down 35.1% year-on-year, with an amount of HKD 34.7 billion, a decrease of 37% from the previous year [2] - The relaxation of mortgage policies has effectively lowered the entry barrier for homebuyers, allowing them to secure loans with a lower down payment, thus stimulating activity in the lower-priced property market [3]

Core Insights - The Hong Kong mortgage insurance market is experiencing a significant increase in both the number of new applications and the total amount insured, indicating a recovery in the real estate market following the announcement of the fiscal budget [1][2] Group 1: Mortgage Insurance Statistics - In April 2025, the number of new mortgage insurance applications increased by 18.4% month-on-month, reaching 610 applications, while the total amount insured surged by 30% to HKD 3.4 billion, marking a seven-month high for both metrics [1] - The number of new mortgage insurance applications has risen for four consecutive months, with April's figures reaching 1,490 applications, a 10% month-on-month increase and the highest in eight months [1] - The total loan amount associated with new applications grew by 7.4% to HKD 7.1 billion, also a six-month high [1] Group 2: Market Trends and Influences - The increase in mortgage insurance applications is attributed to a recovery in the Hong Kong property market following the fiscal budget announcement, with a notable rise in transactions exceeding 50% in March [1] - The proportion of new mortgage insurance applications for first-hand properties rose significantly from 34% in March to 54% in April, driven by earlier transactions of new developments [1] - Despite the positive trends in April, the overall number of new mortgage insurance applications for the first four months of 2025 was 2,169, a decrease of 17.3% compared to the same period last year, with the total amount insured at HKD 11.3 billion, down 18.4% year-on-year [2]

Group 1 - The core viewpoint indicates that the Hong Kong mortgage insurance market is experiencing fluctuations, with new mortgage insurance approvals increasing month-on-month but the total amount declining, reflecting a mixed sentiment in the property market [1] - In March, new mortgage insurance approvals rose by 2.5% month-on-month to 1,355 cases, marking the highest level in four months, although it remains below the 1,400 cases threshold for two consecutive quarters [1] - The total amount of new mortgage insurance fell by 5.9% month-on-month to HKD 6.6 billion, reaching a six-month low, indicating a cautious market environment [1] Group 2 - The number of new mortgage insurance applications decreased by 2.3% month-on-month to 515 cases, with the loan amount dropping by 4.7% to HKD 2.6 billion, both hitting new lows in four and two months respectively [1] - The first quarter saw a 5.4% increase in new mortgage insurance applications compared to the previous quarter, totaling 1,559 cases, but a year-on-year decline of 13.2% was noted [1] - The first quarter's new mortgage insurance approvals totaled 3,958 cases, a year-on-year decrease of 32.1%, with the total amount at HKD 20.4 billion, down 31.5% year-on-year [1] Group 3 - The recent government policy changes, including the relaxation of mortgage limits for properties under HKD 15 million, have led to a significant decrease in reliance on high loan-to-value mortgage insurance [2] - In February, the proportion of new mortgage insurance applications for residential mortgages fell to 14.4%, the lowest level since November 2019, indicating a successful impact of the relaxed mortgage policies [2] - The reduction in high loan-to-value mortgage insurance demand is seen as a positive development for the stability of the Hong Kong property market [2]