Fewer loans: New mortgage loans drawn down in February fell 22.3% to $18.4 billion.

New mortgage loans drawn down in February fell 22.3% to $18.4 billion, while new loans approved fell 20.2% to $23.5 billion, the Monetary Authority says.

According to the 23 authorised institutions which participate in the authority's monthly survey of residential mortgage lending, the fall was distributed across all types of property transaction.

Approvals for primary and secondary market transactions fell 41.7% and 20%, and refinancing loans dropped 2.8%. The number of new applications also fell 33.3%.

The proportion of new loans approved at more than 2.5% below the best lending rate fell to 89% from 90.6% in January as the proportion of approvals for Hong Kong Interbank Offered Rate-based loans rose.

The outstanding value of mortgage loans rose 0.8% to $569.9 billion.