RML in negative equity see increase to 21 cases in December 2021

The increase was attributed to bank staff housing loans.

A survey on residential mortgage loans (RML) in negative equity saw an estimated increase of 21 cases at the end of December 2021. 

Previously, three cases were recorded at the end of September 2021.

The study, which was conducted by the Hong Kong Monetary Authority, contributed this to bank staff housing loans, or RMLs under the mortgage insurance programme. These normally have a higher loan-to-value ratio. 

An aggregate value of $126m for RMLs in the same period was also observed, up from the end-September’s recorded value of $9m. Meanwhile, the unsecured portion of these loans also saw an increase to $2m at the end of December 2021, also an increase from the $330,000 seen at end-September 2021. 

Not included in these statistics are RMLs associated with co-financing schemes which would be in negative equity if second mortgages were taken into consideration.