In 2023, Hong Kong’s mortgage market underwent strategic changes to boost home ownership and market stability against a more challenging market environment, with banks increasingly creating a digitalised front-end journey for applications and expanding their ecosystem of value-added services to attract customers.

On an industry level, home loans grew by 3.4% year-on-year (YoY) in 2023 with the outstanding value of industry mortgage loans in Hong Kong at HKD 1,979 billion ($253 billion) in 2023, according to the Hong Kong Monetary Authority (HKMA)¹. As a leading player in mortgage services, with a share of 22% in FY2023 based on outstanding balances, Bank of China (Hong Kong) (BOCHK) grew its personal mortgage portfolio by 7.4% YoY in 2023 to HKD 435.5 billion ($56 billion), according to the bank’s annual report.   

BOCHK maintained its number one market position in terms of the total number of new residential mortgage loans in Hong Kong from 2019 to 2023. Market share in the number of new mortgage loans increased to 29.3% in 2023.

Tailored excellence with seamless online-to-offline mortgage advisory services

By leveraging its extensive network, BOCHK has established dedicated mortgage centres in 33 branch locations across Hong Kong. This strategic placement not only enhances the bank's local mortgage services but also strengthens relationships with local estate agents in the vicinity.

To offer an array of mortgage solutions, the mortgage specialists are equipped with extensive knowledge and committed to outserving customers with professional and personalised service, which demonstrated the bank’s commitment in service excellence.

BOCHK is also a leading player in reverse mortgages, providing customers with financial flexibility during their retirement days. The bank is increasingly paying attention to targeting the ‘Silverhair’ segment. It sets up dedicated sales teams to offer a reverse mortgage programme product introduction and consultation service, enabling those aged 55 or above to use their residential properties in Hong Kong as security to receive monthly payouts.

Customer-centric fintech innovation

To better meet customer needs in the end-to-end home buying process, BOCHK expanded its ecosystem of services and further refined its “Home Expert” app. It launched an integrated offline-online home purchase ecosystem, and the upgraded “Home Expert” app includes the core functions of purchase planning, property search, mortgage application, and smart living.

By further refining its “Home Expert” app in 2023, BOCHK has enhanced the homebuying experience with comprehensive planning and online mortgage services. The app now offers tips and calculators to help buyers understand government policies and manage budgets.

In the planning stage, it offers comprehensive information on government housing policies and purchase planning. It provides first-time buyers with practical tips and calculators for budgeting, including down payment, stamp duty, legal fees, and loan affordability.

BOCHK has also streamlined the mortgage application process, emphasising ease-of-use and digital integration. The “Home Expert” app includes a mortgage assessment function, allowing potential homebuyers to receive in-principle mortgage loan approval within minutes by inputting basic information. This facilitates informed decisions before signing a provisional sales and purchase agreement and making the initial deposit.

All the information entered is securely saved for subsequent use in the formal mortgage application. The application process is fully digital, enabling customers to apply, upload documents, and track approval status via the app, ensuring accessibility, and eliminating the need for physical paperwork. It also proved particularly popular among homebuyers, with 59% of the bank’s mortgage applications done via online channels, marking a 12% increase from 2022.

The mortgage application feature simplifies the process with quick pre-approval estimates and digital application tracking. Additionally, the smart living feature provides useful tips and resources for new homeowners, including contacts for utilities and service providers, enhancing the move-in experience.

BOCHK was the first bank to use blockchain technology on property valuation as early as 2016. With the Open API technological advancement, the bank not only offers real-time valuation services, but also integrates seamlessly with major property buying websites of major property agent chains. This gives homebuyers access up-to-date valuations, enabling them to make the most informed decisions when it comes to purchasing a home, which being used over 14 million times demonstrated its effectiveness and convenience to users.

GBA homebuying mortgage services

The Greater Bay Area (GBA), with a combined population of nearly 78 million people as of 2022, according to Statista, is seen as an important contributor to mortgage growth. To facilitate demand from customers in Hong Kong who want to buy properties in the GBA for retirement or vacation, BOCHK provides GBA mortgage services covering property projects in all nine GBA cities. For property search, the platform integrates with major real estate websites via Open API technology including GBA property data integration, providing extensive property listings. Buyers can search for properties and use the instant valuation service for up-to-date valuations. The "Dreamhouse" function offers real-time price alerts, aiding informed purchasing decisions.

BOCHK’s digitalised mortgage services, its online-offline integration with extensive home buying expertise has created unique propositions across various market segments, reflecting its forward-thinking strategy, and solidifying its market-leading position. BOCHK has been awarded the Hong Kong Excellence in Retail Finance and Technology Innovation Award 2024 for Best Home Loan Financing in Hong Kong.