According to the WiseNews Finance APP, there have been rumors of tightening residential mortgages by Hong Kong banks recently. On August 23, the Hong Kong Monetary Authority, together with three note-issuing banks (HSBC, Bank of China, and Standard Chartered), established a special task force for SME financing to assist small and medium-sized enterprises with financing and mortgage loan issues, promising to reply to the approval results within two weeks as long as the required documents are provided by the clients. Wang Meifeng, the director of Centaline Mortgage, expressed that for most buyers, the key to a successful property transaction is whether the mortgage is approved after the purchase. Second-hand property buyers generally need to sign the formal sales contract within 14 days of signing the provisional agreement. If property buyers submit their mortgage applications early, they may even have the opportunity to understand the status of the mortgage approval before signing the formal sales contract, reducing the uncertainty of the sales process and effectively enhancing the confidence of buyers entering the market.

Cao Deming, the Vice President of Midland Mortgage Referral, stated that in the past, bank mortgage approvals were rigorous, and some cases took two months, while mortgages with a high percentage of guarantees could take as long as two and a half to three months. The new arrangement by banks this time is appropriate and can shorten the mortgage approval process, allowing buyers to be informed of the mortgage approval results as soon as possible and make early preparations. Although the banks have accelerated the mortgage approval process, it does not mean that they will relax the mortgage approval conditions. Buyers intending to buy a property can submit mortgage applications to 3 to 4 banks at once, compare offers from different banks, and choose the most favorable mortgage plan.

Lin Wai Hung, the Chairperson of the Hong Kong Association of Banks, stated that some banks have individual strategies, but it is not a one-size-fits-all tightening of mortgage approvals. The industry has reached a consensus to support the Hong Kong economy and also manage its own risks. HSBC has not tightened mortgage approvals, and generally, clients who submit complete documents will receive approval results within two weeks. The recent mortgage approvals by HSBC are consistent with the trend in the residential property transaction volume in the market.