Hong Kong mortgage insurance approvals and drawdowns hit decade-plus lows in October
New mortgage insurance approvals in Hong Kong fell to 701 cases in October, the lowest in nearly 11 years, while new drawdowns plunged over 40 per cent to a decade-plus low. Analysts attribute the decline to reduced property transactions and a structural shift in demand following loan policy easing.
Mortgage insurance approvals and drawdowns in Hong Kong both sank to multi-year lows in October, according to the latest data from the Hong Kong Mortgage Corporation released on 10 November 2026.
New mortgage insurance approvals fell 2.4 per cent month-on-month to 701 cases, the lowest in nearly 11 years. The value of new approvals edged up 1.1 per cent to HK$3.9 billion. New drawdowns, however, tumbled more than 40 per cent in both volume and value, hitting a decade-plus low.
Centaline Mortgage, a local mortgage brokerage, said the sharp drop in new drawdowns mainly reflected a months-long consolidation in the property market after mid-year, with fewer transactions and mortgage applications following suit. The average loan amount for new drawdowns stood at about HK$5.29 million, down 5.2 per cent from the previous month. Primary properties accounted for 11 per cent of the drawdowns and secondary properties for 89 per cent.
In the first 10 months of 2026, new mortgage insurance approvals totalled 10,408 cases worth HK$57 billion, down 23.8 per cent and 16.7 per cent year-on-year, respectively. New drawdowns over the same period fell 22.5 per cent in volume and 16.1 per cent in value.
Centaline Mortgage attributed the structural decline in demand for high-loan-to-value (LTV) mortgage insurance to the full relaxation of home-loan policies. Banks have restored the maximum LTV ratio to 70 per cent, reducing the basic down payment to 30 per cent. The proportion of non-insured buyers, such as investors, entering the market has also risen, further reducing reliance on mortgage insurance.