Affordability (By Payment)

Affordability Calculator (By Payment)

The Hong Kong Mortgage Association (HKMA) has detailed guidelines on how bank mortgage loans are issued, based primarily on the price of the property, requested loan amount and the financial profile of the purchaser.

We have outlined some important information as well as the procedural steps you should follow to help successfully apply for a home mortgage.

Monthly PaymentMaximum monthly mortgage payment that you can afford
Down PaymentA portion of the purchase price you pay upfront
Loan DurationDuration of loan in years (e.g. 30 years)
Interest RateAnnual percentage rate the bank charges
Assumed interest rate is higher than market rate to factor bank stress tests
Special Stamp Duty (SSD) is payable (10% to 20%) when there is a resale or transfer of the property within 36 months

With the website or mobile app you can view thousands of high-quality Hong Kong residential properties. Visit our website to get more information or tell us what you need via WhatsApp.

Disclaimer: This information is for reference only. The company makes no guarantees or representations as to its accuracy, completeness and/or suitability for any particular purpose. Please consult with a financial institution for actual mortgage eligibility, loan approval, and formal loan terms and conditions.

Learn more about Mortgage

What is a Mortgage Calculator?

Our mortgage calculator is a tool used to estimate the closing costs for the purchase of your home (e.g. down payment, stamp duty, fees), and to provide estimates on your monthly mortgage payments.

What is Mortgage Insurance Programme (MIP)?

Current mortgage guidelines (7 July 2023) allow banks to provide consumers with mortgages up to 80% (and up to 90% LTV in certain instances) for properties up to $10 million. However, any time a bank underwrites a mortgage it assumes credit risk and these risks increase the larger the LTV.

The MIP, launched by The Hong Kong Mortgage Corporation Limited (HKMC), provides mortgage insurance to banks to mitigate some of this credit risk. Whenever a consumer acquires a mortgage from a bank, the consumer must purchase mortgage insurance on the mortgage in excess of 70% LTV. This insurance protects the bank from consumer default risk on the portion of the bank mortgage exceeding 70%.

The net effect of MIP is that banks can issue mortgages with a higher LTV to promote home ownership in Hong Kong, MIP lowers banks’ credit risk, and MIP provides a layer of added stability to the Hong Kong banking system.

* Data as of July 13, 2023.

*Mortgage Insurance Program from HKMA

Tip to Consider When Applying for a Mortgage

According to the HKMA, up to 95% of property buyers generally sign on to two general floating-rate mortgage plans: The H mortgage (interbank mortgage), and P mortgage (prime rate mortgage). About 90% of applicants opt for the H option, primarily as its actual interest rate is usually lower than that of the P . But if a bank is caught in an interest rate hike cycle, the P interest rate may be more advantageous. So, before you select a mortgage plan, it is important to have a full understanding of the calculation methods associated with each mortgage interest rate and make sure you have a full grasp of the actual market environment before you make a final decision.

What is a Stamp duty?

When you purchase a property in Hong Kong, stamp duty paid to the government is required for both the buyer and seller (under certain conditions). Stamp duty is essentially a tax that is levied on a property purchase and come in various forms including SSD, AVD and BSD.

Special Stamp Duty (SSD)

Effective 20 Nov. 2010, an SSD will be levied on any residential property, either owned by an individual or company and resold within 24 months (if the property was acquired on or after 20 November 2010, and before 27 October 2012) or within 36 months (if the property was acquired on or after 27 October 2012).



6 months or less 15% of purchase price 20% of purchase price
More than 6 months but for 12 months or less 10% of purchase price 15% of purchase price
More than 12 months but for 24 months or less 5% of purchase price 10% of purchase price
More than 24 months but for 36 months or less - 10% of purchase price

Source:Inland Revenue Department effective from 20 November 2010

Ad valorem stamp duty (AVD)

The AVD for residential properties is a tax on properties that scales up in proportion to the transaction value. The rates were last amended on 22 February 2023 and the schedule is as follows:

Consideration or value of the property(whichever is the highter)

Stamp Duty Rates
Up to $3,000,000 $100
$3,000,001 to $3,528,240 $100+10% of the excess over $3,000,000
$3,528,241 to $4,500,000 1.50%
$4,500,001 to $4,935,480 $67,500+10% of the excess over $4,500,000
$4,935,481 to $6,000,000 2.25%
$6,000,000 to $6,642,860 $135,000+10% of the excess over $6,000,000
$6,642,8619,000,000 3.00%
$9,000,00110,080,000 $270,000+10% of the excess over $9,000,000
$10,080,00120,000,000 3.75%
$20,000,00121,739,120 $750,000+10% of the excess over $20,000,000
$21,739,120 and above 4.25%


Of note, certain buyers are subject to a flat 15% AVD stamp duty. This applies specifically to non-permanent residents, HK permanent residents who already own a property, when a registered company purchases a property, and when more than one property is purchased under a single instrument.

Buyer's Stamp Duty (BSD)

If a non-Hong Kong permanent resident or company purchases property in Hong Kong, an extra 15% stamp duty, called a BSD, will be levied on top of the AVD.

How to apply for a mortgage in Hong Kong?

The speed and success of receiving a mortgage relies heavily on being qualified and submitting the proper documentation in time.

Step 1: Prepare all mortgage application documents

Before you submit your mortgage application, you must first complete application documents, which include:

  • Signed Provisional Sale and Purchase Agreement
  • A copy of the borrower’s Hong Kong ID card (if there is a guarantor, a copy of his/her identity document must also be provided)
  • Income certificates and other records spanning the past three months, i.e. - pay slips, bank statements or passbooks, or other similar records. Those with non-fixed incomes may need to provide more detailed records
  • Proof of employment
  • The most recent tax bills or tax returns

Step 2: Submit a mortgage application

Carefully review various mortgage plans, interest rates and discounts on offer from banks in Hong Kong, then choose and submit a mortgage application to the bank that best suits your needs. In addition to your target bank we recommend that you apply to two to three other banks to prevent unexpected outcomes. If you hired a law firm to help with your sales contract, make certain that the firm has been approved by the bank.

Step 3: The bank reviews the mortgage application

In order to assess your eligibility, a bank will consider the mortgage interest rate, tenor and loan amount based on: (a) the value of the property (b) the age of the building and (c) the applicant’s financial profile (salary, credit history, assets, etc.). The approval process can take anywhere from a few days to two months, so make sure you budget sufficient time when you apply. Following approval of the mortgage, the bank will sign a contract with you, and send a letter to your law firm to handle the processing of all relevant documents.

Step 4: Signing the documents

The mortgage deed and all other documents required by the bank must be signed prior to the actual transaction date. When signing various documents, make sure to use a consistent signature in order to avoid re-signing by the bank or law firm.

Step 5: Finalizing the Purchase

Once the bank approves your mortgage loan, arrangements will be made for you to withdraw it from the bank. Home buyers will then have to start making contributions within the contracted period based on all relevant stipulations.

The above information is for reference only, and not binding on OKAY Property Agency Limited (the “”). does not warrant the accuracy, timeliness or completeness of any of such information or whether they are fit for any purposes. also does not assume any liability for any reliance on such information.

List of Bank Mortgage Calculators:
HSBC Mortgage Calculator
Hang Seng Mortgage Calculator
BOC Mortgage Calculator
Standard Chartered Mortgage Calculator

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