The mortgage insurance programme will be expanded to cover cash-out refinancing mortgages with a maximum loan-to-value ratio of 85% and a maximum loan size of $5 million from December 7, the Mortgage Corporation says.

According to the Monetary Authority's monthly survey of residential mortgage lending, the aggregate amount of new approvals for refinancing loans in the first nine months of this year amounted to $26 billion, a 100% increase over last year.

In view of soaring demand for refinancing loans, a number of banks have requested the scope of the mortgage insurance programme be expanded to cover cash-out refinancing mortgages.