Credit market sees growth in personal loans, mortgages

Meanwhile, credit card and revolving line activities declined.

Hong Kong’s credit market experienced growth in personal loans and mortgage originations during the second quarter, according to a TransUnion report.

In Q2 2025, mortgage origination volumes increased by 4.6% YoY, whilst the number of accounts increased by 3.3%.

However, the average value of new mortgages declined by 9.5%, and total outstanding balances increased by just under 1%.

With thousands of new flats, many attractively priced, increased activity in the region’s property market is likely to improve consumer confidence.

Meanwhile, credit card and revolving line activities declined, driven by elevated unemployment across the population, especially amongst younger consumers.

Delinquencies remained steadily low at 0.03%. However, the report said the continued growth in new subprime accounts is worth closer monitoring, as these carry a higher risk of delinquency in the future.

Revolving line originations declined by 17.8% year on year in Q1 2025, signalling waning demand, likely brought about by subdued lender campaign activity due to climbing delinquencies.

These may be partly attributed to Hong Kong residents responding to policy changes that encourage property sales, such as stamp duty cuts, reduced transaction costs, and the availability of fixed-rate mortgages.