Mortgage applications rise in February, approved loans hit $26.1b

The number of mortgage applications in February inched up by 0.4 percent to 6,542, the Hong Kong Monetary Authority said.

Mortgage loans approved in February increased by 4.3 percent from January to HK$26.1 billion.

Among these, loans financing primary market transactions increased by 21.6 percent to HK$12.1 billion while those financing secondary market transactions decreased by 9.9 percent to HK$11 billion, HKMA said.

Mortgage loans for refinancing increased by 4.4 percent to HK$3 billion.

Loans drawn down during February increased by 12.8 percent month-on-month to HK$17.6 billion.

The ratio of new mortgage loans priced with reference to the Hong Kong interbank offered rate rose 1 percentage point to 94 percent in February, while that referring to the prime rates decreased 1 percentage point to 2.4 percent.

The outstanding value of mortgage loans increased month-on-month by 0.2 percent to HK$1.88 trillion by the end of February.

The mortgage delinquency ratio stood at a low level of 0.12 percent, while the rescheduled loan ratio was unchanged at nearly 0 percent.

STAFF REPORTER