A. Primary Housing Finance Market
A.1 Industry Structure and Performance
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Types of originating lenders/market share: | A.1.2 | ||||
| Are there (quasi) public mortgage lenders: | Yes | Yes | Yes | Research | A.1.4 |
| Universal/ commercial banks | Yes | Yes | Yes | Bank of China (Hong Kong) | A.1.4.1 |
| Level of Non-Performing Mortgage Loans (90 days or more past due): | A.1.6 | ||||
| as a % of outstanding loan amount | .02% | .03% | .03% | HK Monetary Authority | A.1.6.2 |
| Average 1997-2007 | A.1.7 | ||||
A.2 Size of Mortgage Finance Sector
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Total amount of home mortgage loans outstanding at the end of year in millions of USD: | 167,381.92 USD (millions) | 154,316.36 USD (millions) | 144,268.38 USD (millions) | HK Monetary Authority | A.2.1 |
| Total amount of home mortgage loans outstanding at the end of year as % of GDP (current) | 46.15% | 45.16% | 44.96% | HK Monetary Authority | A.2.1.1 |
| and as % of all credits outstanding | 20.46% | 20.04% | 21.58% | HK Monetary Authority | A.2.1.2 |
| Total amount of home mortgages made in calendar year in millions of USD | 43,772.79 USD (millions) | 40,071.6 USD (millions) | 24,200.59 USD (millions) | HK Monetary Authority | A.2.3 |
| and as % of GDP (current) | 12.07% | 11.73% | 8.73% | HKMA and WEO | A.2.3.1 |
| Total # of home mortgage originations made in calendar year | 86.58 thousand | 84.16 thousand | 57.59 thousand | HK Monetary Authority | A.2.4 |
| What % of total new mortgages is refinance? | 43.18% | 30.57% | 33.14% | HK Monetary Authority | A.2.5 |
A.3 Housing Finance Products
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Mortgage products as % of all mortgages (approx.) in local currency: | A.3.1 | ||||
| Fixed rate for life of loan | 13.4% | HK Monetary Authority | A.3.1.1 | ||
| Variable rate/indexed | 69.54% | 93.97% | HK Monetary Authority | A.3.1.2 | |
| Variable rate/discretionary | 15.1% | 2.19% | HK Monetary Authority | A.3.1.3 | |
| Other fully amortizing loans (e.g. Rollover) | 1.96% | 1.87% | HK Monetary Authority | A.3.1.4 | |
| Most prevalent type of foreign currency mortgage used: | A.3.3 | ||||
| Most frequent interest rates on fully amortizing: | A.3.4 | ||||
| Typical lender fees associated with mortgage origination: | A.3.6 | ||||
| Typical third party fees associated with mortgage origination: | A.3.7 | ||||
| Loan-to-Value (LTV) on first mortgage: | A.3.8 | ||||
| Maximum LTV | 90% | 90% | 90% | HK Mortgage Company | A.3.8.1 |
| Typical LTV at origination | 45% | 50% | 55% | HK Monetary Authority | A.3.8.2 |
| Maximum term over which pmt is calculated? | 30 years | HK Mortgage Company | A.3.9 | ||
| Mortgage pmt-to-income ratio | A.3.10 | ||||
| Maximum pmt-to-income ratio (Individual income) | 50% | A.3.10.2 | |||
A.4 Lending and Servicing Process
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Does the mortgage industry use standard principles/guidelines for underwriting? | Yes | Yes | Yes | Research | A.4.1 |
| Which institutions define underwriting rules? | A.4.2 | ||||
| Central Bank/Ministry of Finance | Yes | Yes | Yes | A.4.2.1 | |
A.5 Credit Risk Assessment
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Do credit bureaus exist? | Yes | Yes | Yes | TransUnion | A.5.2 |
| Are there legal/regulatory constraints to gaining access to credit information? | Yes | Yes | Yes | Office of the Privacy Commissioner for Personal Data | A.5.2.1 |
| Is mortgage default insurance available? | Yes | Yes | Yes | HK Mortgage Corporation | A.5.3 |
| When did it begin operating? | 1999 | 1999 | 1999 | A.5.3.1 | |
| What is the typical MI product? | HKMC's Mortgage Insurance Program | HKMC's Mortgage Insurance Program | HKMC's Mortgage Insurance Program | HK Mortgage Corporation | A.5.3.2 |
| Number of private mortgage insurers | 0 | BIS | A.5.3.3 | ||
| Is there public sponsored MI / guarantee? | Yes | Yes | Yes | HK Mortgage Corporation | A.5.5 |
B. Funding Sources for Mortgages and the Secondary Mortgage Market
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| What are the main funding sources for mortgages? | B.1 | ||||
| Retail funding (deposits/other) | primary | primary | primary | HKMA | B.1.1 |
| Funding through securitization of mortgages | secondary | secondary | secondary | HK Mortgage Corporation | B.1.4 |
C. Housing Microfinance
| Variable | End of 2018 | End of 2017 | End of 2016 | Sources | Var ID |
|---|---|---|---|---|---|
| Are non-collateralized housing micro-finance loans offered? | No | No | No | Research | C.1 |
| Types of lenders operating in the housing micro-finance (HMF) sector: | C.2 | ||||
| Others | Yes | Yes | Hong Kong Mortgage Corporation | C.2.4 | |
| Level of NPLs (>90 days past due) in HMF | C.4 | ||||