Mortgage loans in negative equity surge to 32,073 in Q1

The total value of residential mortgage loans rose to $165.3b.

The number of residential mortgage loans (RMLs) in negative equity jumped to 32,073 in 1Q24 from 25,163 in the previous quarter, the Hong Kong Monetary Authority (HKMA) said.

In 1Q24, the total value of RMLs in negative equity increased to $165.3b from $131.3b in 4Q23, whilst its three-month delinquency ratio rose to 0.06% in 1Q24 from 0.03% in 4Q23.

These cases primarily involved bank staff housing loans or RMLs under mortgage insurance programmes, typically having higher loan-to-value ratios.

In addition, the unsecured portion of these loans also increased to $11.2b in 1Q24 from $7.3B in the previous quarter.