【Property Market Uptrend Continues | Properties Regain Equity | Hong Kong Credit Offers Mortgages of Up to 90%】

According to figures released by the Hong Kong Monetary Authority, the number of residential negative equity cases stood at 4,356 at the end of the second quarter, representing a sharp decline of over 60% compared with the end of the first quarter. The rapid improvement in negative equity suggests that property valuation levels have increased, making it a good opportunity for homeowners to consider mortgage refinancing and property mortgage cash-out.

Hong Kong Credit offers first mortgage and second mortgage solutions for properties, with loan amounts of up to 90% of the property value, helping homeowners who were previously unable to cash out due to insufficient valuation fully utilise their property value and meet immediate funding needs.

Hong Kong people often refer to “property equity” or “property value room”, which is closely related to a basic financial concept: property valuation and loan-to-value mortgage ratio. “Negative equity” refers to a situation where the outstanding mortgage loan owed by a homeowner is higher than the current market value of the property.

For example, if a property was purchased for HK$8 million and the homeowner still owes the bank HK$6 million, but the property value has fallen to HK$5.5 million, the sale proceeds would theoretically be insufficient to repay the outstanding mortgage loan. This situation is known as negative equity.

When the number of negative equity cases decreases, it usually reflects stabilising property prices, rising property valuations, and a lower outstanding loan ratio. Homeowners may therefore regain property equity. This equity is commonly referred to as the available “room” in the property. Simply put, after deducting the outstanding mortgage from the property valuation, the remaining amount represents the asset value that the homeowner may be able to utilise.

For example, if the latest property valuation is HK$6 million and the outstanding bank mortgage is HK$3 million, the homeowner has approximately HK$3 million in property equity. However, the actual amount that can be borrowed does not equal the full equity value. It depends on factors such as the lender, mortgage ratio, income, credit record, and repayment ability.

The first mortgage, second mortgage and refinancing services offered by Hong Kong Credit help homeowners use their property as collateral to obtain additional funds for business turnover, renovation, medical expenses, family expenses, debt consolidation, or other financial needs.

A first mortgage refers to the first-ranking mortgage, usually the main mortgage applied for from a bank when purchasing a property. A second mortgage refers to borrowing from another financial institution using the same property as collateral while an existing first mortgage is still in place.

Second mortgages generally carry higher risk because if the homeowner fails to repay the loan and the property has to be sold, the first mortgage lender has priority in receiving repayment, while the second mortgage lender ranks behind. Therefore, the interest rates and terms of a second mortgage are often different from standard bank mortgage arrangements. Borrowers should carefully compare their options before making a decision.

Before applying for any property mortgage cash-out, homeowners should first calculate their monthly cash flow and understand the actual annual percentage rate, repayment period, handling fees, overdue interest charges, and early repayment terms. It is therefore important to choose a reputable, professional, licensed, and well-established financial company.

With 30 years of property mortgage experience, Hong Kong Credit has the expertise and flexibility to provide practical mortgage solutions for different needs.

Hong Kong Credit Property First Mortgage, Second Mortgage and Refinancing Services

• Loan amount up to HK$50 million
• No review of past credit record required
• 24/7 express approval
• All types of properties accepted
• No property age restriction
• Owner-occupied or rental properties are welcome
• Daily interest calculation
• No penalty for early repayment

Property Mortgage Services

Property Mortgage Service: https://shorturl.at/DJPU8
WhatsApp Professional Consultation: http://bit.ly/3vxBnQB
Enquiry Hotline: 2525 3535

Reminder: To borrow or not to borrow? Borrow only if you can repay. Don’t pay any intermediaries.

Money Lenders Licence Numbers: 769/2026 and 288/2026
Complaint Hotline: 2523 7861

*Note: The above products, services and promotional offers are subject to relevant terms and conditions. Please refer to the website for details.