Hong Kong mortgage drawdowns fall to HKD 25.3 bn in September; HKMA holds base rate at 4.25%
A one-minute summary read by an AI voice.
Key points
- New mortgage loans drawn down fell to HKD 25.3 bn in September (down 22.8% from August 2026), and applications fell to 7,560 (down 10.5% from August 2026).
- Approvals were little changed at HKD 31.8 bn (down 1.1% from August 2026): refinancing approvals rose to HKD 8.9 bn while purchase-related approvals fell; the delinquency ratio stayed at 0.11%.
- The HKMA kept its Base Rate at 4.25% on 29 October after the US Federal Reserve held, and urged the public to manage interest-rate risk when borrowing.
Implications for lenders
Lenders in Hong Kong can expect more refinancing requests, as refinancing approvals rose to HKD 8.9 bn in September, and may face pricing pressure to retain borrowers. With the Base Rate at 4.25%, underwriting for floating-rate loans can stress-test repayments against higher HIBOR, while the delinquency ratio of 0.11% gives no sign yet of repayment strain in mortgages.
Implications
Facts
The Hong Kong Monetary Authority (HKMA) published its residential mortgage survey for September 2026 on 30 October 2026. New mortgage applications fell to 7,560, down 10.5% from August 2026. 1 New loans approved were HKD 31.8 bn, down 1.1% from August 2026. 2 Within approvals, primary-market purchases were HKD 8.5 bn (down 6.8% from August 2026), 3 secondary-market purchases HKD 14.4 bn (down 5.7% from August 2026) 4 and refinancing HKD 8.9 bn (up 14.6% from August 2026). 5
New loans drawn down fell to HKD 25.3 bn, down 22.8% from August 2026. 6 The share of new loans priced off HIBOR fell to 52.7%, down from 57% in August 2026. 7 Outstanding mortgage loans were HKD 1,980.3 bn at end-September, up 0.2% from end-August 2026. 8 The delinquency ratio was 0.11%, unchanged from end-August 2026, and the HKMA described the rescheduled loan ratio as close to zero. 9
On 29 October 2026 the HKMA kept the Base Rate at 4.25%, unchanged; last raised by 25 bp on 17 September 2026, after the US Federal Reserve left its policy rate unchanged. 10 The HKMA said US rate moves may influence Hong Kong's interest rate environment, that carry trade activity may cause the Hong Kong dollar to gradually ease, and urged the public to carefully manage interest rate risks when buying property, investing or borrowing.
Analysis
The September data cover the first weeks after the HKMA raised the Base Rate to 4.25% on 17 September. 11 Monthly approvals peaked at HKD 50.6 bn in June 12 and have fallen in each month since, to HKD 31.8 bn in September, below the HKD 32.5 bn of January. 13 The mix also shifted: refinancing rose while purchase-related approvals fell, which is consistent with borrowers re-pricing existing loans rather than buying.
Credit quality in the mortgage book is stable on the survey's measure: the delinquency ratio was 0.11%, compared with 0.13% at end-January. 14 Outstanding loans were still higher than the HKD 1,923.4 bn at end-January. 15 One month of lower drawdowns does not yet show a turn in the housing market, since drawdowns follow approvals with a lag.
| 2026-02 | 29 |
|---|---|
| 2026-03 | 40.1 |
| 2026-04 | 36.5 |
| 2026-05 | 40.2 |
| 2026-06 | 50.6 |
| 2026-07 | 44.8 |
| 2026-08 | 32.2 |
| 2026-09 | 31.8 |
Value of new residential mortgage loans approved in the month (HKMA residential mortgage survey) · Source: HKMA residential mortgage survey (monthly press releases) (2026-02, 2026-03, 2026-04, 2026-05, 2026-06, 2026-07, 2026-08, 2026-09) Monthly approvals are volatile and include refinancing; June and July values are taken from reproductions of the HKMA releases.
Counterpoints and uncertainties
One month's decline may reflect timing of completions rather than demand; the survey does not explain the fall in drawdowns. Local banks set their own prime rates, so the effect of the Base Rate on borrowers depends on bank pricing and HIBOR.
Key figures
- Mortgage applications (September 2026): 7,560 (down 10.5% from August 2026). Number of new residential mortgage loan applications in the month. Authorized institutions in the HKMA residential mortgage survey. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Residential Mortgage Survey Results for September 2026
- Mortgage loans approved (September 2026): HKD 31.8 bn (down 1.1% from August 2026). Value of new residential mortgage loans approved in the month. Authorized institutions in the HKMA residential mortgage survey. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Residential Mortgage Survey Results for September 2026
- Approved mortgages for primary-market purchases (September 2026): HKD 8.5 bn (down 6.8% from August 2026). Value of new mortgage loans approved for primary-market transactions in the month. Authorized institutions in the HKMA residential mortgage survey. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Residential Mortgage Survey Results for September 2026
- Approved mortgages for secondary-market purchases (September 2026): HKD 14.4 bn (down 5.7% from August 2026). Value of new mortgage loans approved for secondary-market transactions in the month. Authorized institutions in the HKMA residential mortgage survey. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Residential Mortgage Survey Results for September 2026
- Approved refinancing loans (September 2026): HKD 8.9 bn (up 14.6% from August 2026). Value of new mortgage loans approved for refinancing in the month. Authorized institutions in the HKMA residential mortgage survey. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Residential Mortgage Survey Results for September 2026
- Mortgage loans drawn down (September 2026): HKD 25.3 bn (down 22.8% from August 2026). Value of new mortgage loans drawn down in the month. Authorized institutions in the HKMA residential mortgage survey. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Residential Mortgage Survey Results for September 2026
- HIBOR-based share of new mortgages (September 2026): 52.7% (down from 57% in August 2026). Share of newly approved mortgage loans priced with reference to HIBOR. Authorized institutions in the HKMA residential mortgage survey. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Residential Mortgage Survey Results for September 2026
- Outstanding residential mortgage loans (end-September 2026): HKD 1,980.3 bn (up 0.2% from end-August 2026). Outstanding residential mortgage loans at month-end. Authorized institutions in the HKMA residential mortgage survey. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Residential Mortgage Survey Results for September 2026
- Mortgage delinquency ratio (end-September 2026): 0.11% (unchanged from end-August 2026). Mortgage delinquency ratio as published in the HKMA residential mortgage survey. Authorized institutions in the HKMA residential mortgage survey. Basis date: 30 Sep 2026. Source: HKMA (2026-10-30): Residential Mortgage Survey Results for September 2026
- HKMA Base Rate: 4.25% (unchanged; last raised by 25 bp on 17 September 2026). Base Rate of the Discount Window, set by a pre-set formula; decision of 29 October 2026. Hong Kong Monetary Authority. Basis date: 29 Oct 2026. Source: China Daily Asia (2026-10-29): HKMA holds base rate steady, tracking Fed move
Figure as reported by China Daily Asia and Trading Economics from the HKMA announcement of 29 October 2026.
- HKMA Base Rate: 4.25% (up 25 bp from 4.00%). Base Rate of the Discount Window, set by a pre-set formula. Hong Kong Monetary Authority. Basis date: 17 Sep 2026. Source: on.cc (2026-09-17), reporting the HKMA announcement
Figure as reported by on.cc from the HKMA announcement of 17 September 2026.
- New mortgage loans approved (June 2026): HKD 50.6 bn (up 25.8% from May 2026). Value of new residential mortgage loans approved in the month (HKMA survey). Authorized institutions in the HKMA residential mortgage survey. Basis date: 30 Jun 2026. Source: Rica Mortgage (reproducing HKMA release of 2026-07-31): Residential mortgage survey results for June 2026
- New mortgage loans approved (January 2026): HKD 32.5 bn (up 4.1% from December 2025). Value of new residential mortgage loans approved in the month (HKMA survey). Authorized institutions in the HKMA residential mortgage survey. Basis date: 31 Jan 2026. Source: HKMA via HKSAR Government (2026-02-27): Residential mortgage survey results for January 2026
- Mortgage delinquency ratio (end-January 2026): 0.13%. Mortgage delinquency ratio as published in the HKMA residential mortgage survey. Authorized institutions in the HKMA residential mortgage survey. Basis date: 31 Jan 2026. Source: HKMA via HKSAR Government (2026-02-27): Residential mortgage survey results for January 2026
- Outstanding residential mortgage loans (end-January 2026): HKD 1,923.4 bn (up 0.3% from end-December 2025). Outstanding value of residential mortgage loans at month-end (HKMA survey). Authorized institutions in the HKMA residential mortgage survey. Basis date: 31 Jan 2026. Source: HKMA via HKSAR Government (2026-02-27): Residential mortgage survey results for January 2026
Sources
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