Smart Guide
Mortgage Guide

 

New Mortgage
90% LTV Mort
Re-Financing
Gov't Measures
 
For Property Mortgage Loan-to-value Ratio
Types of Property Value of property Loan-to-value (LTV) ratio cap
Applicants’ income mainly derived in HK Applicants’ income mainly derived from outside HK
1st Mortgage Loan 2nd Mortgage Loan 1st Mortgage Loan 2nd Mortgage Loan
Residential property (Self-use) $10M or above
50% 40% 40% 30%
Below $10M 60% (Capped at $5M) 50% (Capped at $4M) 50% (Capped at $4M) 40% (Capped at $3M)
Residential property (Non-self-use) Regardless of value 50% 40% 40% 30%

Commercial & industrial properties/ Car park spaces

Regardless of value 40% 30% 30% 20%
*2nd Mortgage Loan: Borrower or guarantor with one or more pre-existing mortgages
*Exemption arrangement:
for mortgage borrowers whose income is mainly derived from outside HK: Mortgage applicants who can demonstrate that they have a close connection with HK. E.g. applicants who are seconded by local employers to work outside HK with documentary proof provided by the employers or applicants who have immediate family members (i.e. spouse, parents, and descendants) residing in Hong Kong will not be subject to the reduction in LTV caps.

 

For Mortgage Loans Assessed Based on Borrowers’ Net Worth
Types of Properties Value of properties Loan-to-value (LTV) ratio cap
1st Mortgage Loan 2nd Mortgage Loan
For all residential properties
Regardless of value 40% 30%
For all commercial and industrial properties Regardless of value 30% 20%

 

For “Debt-to-Income ratio (DTI) and “Stress-Test”
All residential, commercial and industrial properties Applicants’ income mainly derived in HK Applicants’ income mainly derived from outside HK
1st Mortgage loan 2nd Mortgage loan 1st Mortgage loan 2nd Mortgage loan
Base-DTI cap
≦50%
(Self-use)
≦40%(Non-self use)
≦40%
(Self-use)
≦40%(Non-self use)
≦40%
(Self-use)
≦30%(Non-self use)
≦30%
(Self-use)
≦30%(Non-self use)
 
Stressed-DTI cap
(assuming an increase in mortgage rate of at least three % points)
≦60%
(Self-use)
≦50%(Non-self use)
≦50%
(Self-use)
≦50%(Non-self use)
≦50%
(Self-use)
≦40%(Non-self use)
≦40%
(Self-use)
≦40%(Non-self use)

For Mortgage Insurance Programme (MIP)
Property Value Loan-to-value ratio (LTV)
Below $8M 90%*
Above $8 to below $9M 80% - 90%* (loan amount capped at HK$7.2M*)
At or above $9M to $10M 80%

*The maximum debt-to-income (DTI) ratio for both the above-mentioned and existing MIP loans will be set at 50%, and borrowers have to meet the stressed DTI ratio. Regular salaried, first-time homebuyers will still be eligible for MIP loans up to 80% or 90% LTV ratio even if they cannot meet the stressed DTI ratio, subject to an additional adjustment to the premium based on relevant risk factors.
 
Remarks:
1) Borrower or guarantor with one or more pre-existing mortgages will be treated as applying 2nd Mortgage Loan
2) MIP will not be available to borrowers whose income is mainly derived from outside HK (e.g. Mainland Customers)
*Exemption arrangement: 1. Justification with documentary proof that show the employment relationship of overseas income applicant and a local employer or 2. Declaration with documentary proof provided by the applicants who have immediate family members (i.e. spouse, parents, and descendants only) is residing in Hong Kong.
3) For borrowers who buy a second property for MIP application, the maximum DTI ratio should not exceed 40% (For self-employed and non-professional applicant should not exceed 35%)
4) Mortgage insurance programme has specific application standard and requirements, and subject to final announcement of HKMC and bank approval.

 

Loan Tenor of Property Mortgage
Loan Tenor Up to 30 Years

*The above information is for reference only, and subject to the latest announcement of HKMA & HKMC.
 
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