*****************************************************
The following is issued on behalf of Hong Kong Monetary Authority:
According to the 23 authorized institutions (AIs) which participate in the HKMA¡¦s monthly survey of residential mortgage lending, new mortgage loans drawn down during November increased by 17.5% to HK$18.7 billion.
New loans approved rose by 20.5% to HK$27.7 billion. The increase was due to increase of HK$6.2 billion (+39.4%) in approvals for secondary market transactions, which more than offset the HK$1.4 billion (-33.4%) decrease in approvals for primary market transactions and the HK$0.1 billion (-3.3%) decrease in approvals for refinancing loans. The number of new applications also increased by 3.9%.
The proportion of new loans approved at more than 2.5% below the best lending rate decreased to 90.9% from 94.0% in October, as the proportion of new approvals for HIBOR-based loans* increased.
The outstanding value of mortgage loans increased by 0.9% to HK$554.6 billion.
The mortgage delinquency ratio and rescheduled loan ratio fell to record lows of 0.11% and 0.20% respectively, driving the combined ratio lower to 0.32%**.
*Mortgage loans priced with reference to Hong Kong Interbank Offered Rates. The precise terms of these loans vary between AIs, with some subject to an interest rate cap with reference to their own prime rates, while others may switch to another reference rate at some point during the life of the loan.
** Not the sum of the two ratios, due to rounding.
For further enquiries, please contact:
Peggy Lo, Manager (Press), at 2878 1687 or
Hing-fung Wong, Officer (Press), at 2878 1802
Ends/Monday, December 24, 2007
Issued at HKT 16:31
NNNN
