Approved mortgage loans up 14.4% to $42.6b in May

However, the number of mortgage applications fell to 14,491.

The number of approved mortgage loans rose 14.4% MoM to $42.6b in May as a greater number of Hong Kong residents turn to debt to fuel their home aspirations in the world’s most expensive property market.

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From this figure, mortgage loans financing primary market transactions edged down 2.1% to $6.4b whilst those financing secondary market transactions rose 16.6% to $24.2b, the Hong Kong Monetary Authority said in a statement. Similarly, mortgage loans for refinancing surged 20.4% to $12.1b.

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However, the number of mortgage applications fell 2.7% MoM to 14,491.

The outstanding value of mortgage loans increased 0.8% MoM to $1,246.3b as of end-May. The mortgage delinquency ratio and rescheduled loan ratio both remained unchanged at 0.02% and nearly 0%.