The government eased mortgage restrictions and stimulated the number of new mortgage applications to increase in November
The HKMA announced yesterday that the number of new loan applications in November increased by 1.2% to 9412; however, the number of new mortgage loans approved decreased by 13.5% monthly. To 28.2 billion yuan. The figures may reflect that the authorities in mid-October increased the ceiling on the value of 90% of first home buyers’ mortgages under the mortgage plan from 4 million yuan to 8 million yuan, increasing the number of mortgages for buildings under 8 million yuan.
9412 new applications
Data from the Hong Kong Monetary Authority shows that in November 2019, loans approved by primary market exchanges decreased by 29.2% to 6.5 billion yuan; loans approved by secondary market exchanges increased by 17.2% to 15 billion yuan. As regards loans approved for refinancing exchanges, they decreased by 37% to 6.7 billion yuan.
During the period, new mortgage loans drawn up were 22.1 billion yuan, a month-on-month decrease of 16.1%. The proportion of newly approved mortgage loans using Hong Kong Interbank Offered Rate (HIBOR) as a pricing reference fell 4.9 percentage points month-on-month to 79.7%; the proportion priced at the best lending rate (P) rose by 5.3 percentage points. To 17.7%. In addition, the total outstanding mortgage loans in November increased by 0.5% to 1.4 trillion yuan; the mortgage loan delinquency ratio increased slightly to 0.03%, and the restructured loan ratio remained close to 0%.
Cao Deming, Senior Vice President of Meridian Mortgage Referral, said that the amount and number of new mortgage loans approved and newly taken fell for four consecutive months, mainly due to the stalemate in the property market in the fourth quarter of 2019. Some callbacks; coupled with the unstable market sentiment and high cost of mortgage funds, banks’ enthusiasm for the mortgage business decreased at the end of the year.
Cao Deming also pointed out that the good news such as interest rate cuts and easing of mortgage yields in October has the opportunity to pick up the number of mortgages in December. It is expected that the number of newly approved and newly acquired mortgages in 2019 will be the same as that of 2018’s 108,000 and 87,000 cases are similar.
Bank P slightly increased in proportion
Wu Meifeng, the managing director of Wuzhongyuan Mortgage, pointed out that after the bank raised the new mortgage rate a few months ago, the P-interest rate provided by individual banks was better than the H-interest rate, so it attracted some users to use the P-rate, which caused P to increase slightly.
Since most banks adjusted their new H-interest rates to be in line with P-interest rates, H’s mainstream advantage was largely unaffected.