Complete Mortgage Guide — Hong Kong

How Mortgages Work in Hong Kong

Hong Kong operates a linked exchange rate system to the US dollar, meaning HKMA policy closely follows the US Federal Reserve. Mortgage rates are benchmarked to either HIBOR (Hong Kong Interbank Offered Rate) or the banks’ Prime Rate. HIBOR-based loans offer lower rates but more volatility, while Prime-based loans provide stability. Most borrowers choose HIBOR-linked products with a Prime Rate cap

Use our mortgage calculator to see how different rates and terms affect your monthly repayments.

Types of Mortgages Available

The main products are HIBOR-based (H-plan, typically HIBOR+1.3-1.5% with a Prime-rate cap), Prime-based (P-plan, typically Prime minus 2-2.5%), and fixed-rate mortgages (less common, available for 1-3 year periods). The HIBOR plan with a Prime cap is the most popular — you get the lower HIBOR rate when markets are calm, with the security of the Prime cap when HIBOR spikes. Cash rebates of 1-2% of the loan amount are commonly offered as incentives

Read our mortgage types comparison for a detailed side-by-side analysis of each product.

How Much Can You Borrow?

The HKMA requires banks to stress test borrowers at the current rate plus 2% (or a floor rate, whichever is higher). The maximum DSR (Debt Servicing Ratio) is 50% of gross income under current rates and 60% under the stress test rate. For borrowers with existing mortgages, limits are stricter at 40%/50%

The maximum loan-to-value in Hong Kong is Without mortgage insurance: 50-60% LTV depending on property value. With HKMC Mortgage Insurance Programme (MIP): up to 80% for properties valued up to HK$10 million, 80% for HK$10-12 million, and 70% for HK$12-19.2 million. First-time buyers accessing MIP at higher LTV pay an insurance premium of 1.5-5% of the loan amount. Loan terms extend up to Maximum 30 years, with most buyers choosing 25-30 years. The borrower’s age plus the term cannot exceed 70-75 years depending on the lender.

The Application Process

Apply to multiple banks simultaneously — comparison shopping is standard practice. Provide HKID, income proof (recent payslips, tax returns/salaries tax demand note), MPF statements, bank statements, and the Provisional Agreement for Sale and Purchase. The bank conducts a property valuation. Approval takes 1-2 weeks. A solicitor handles the mortgage deed. Most banks offer pre-approval before you find a property

Costs and Fees

Mortgage insurance premium (if using MIP) ranges from 1.5% to 5% of the loan amount, payable upfront or added to the loan. Legal fees for the mortgage deed are HK$5,000-15,000. Most banks do not charge processing fees and many offer cash rebates of 1-2% of the loan amount as incentives. Early repayment within the first 2-3 years typically incurs a penalty (clawback of the cash rebate)

What Makes Hong Kong’s Mortgage Market Unique

Hong Kong’s dual-rate system (HIBOR with Prime cap) gives borrowers an elegant risk-return balance that is unusual globally. The HKMC Mortgage Insurance Programme is a government-backed scheme that effectively enables LTV up to 90% while protecting banks from high-LTV risk. Cash rebates of 1-2% of the loan are commonly offered, making Hong Kong one of the few markets where the bank pays you an upfront incentive to take a mortgage

Refinancing Your Mortgage

Refinancing (転按) between banks is common and actively encouraged through cash rebates. After the initial lock-in period (typically 2-3 years), you can switch banks penalty-free and potentially receive another cash rebate. This means many Hong Kong borrowers refinance every 2-3 years, effectively earning rebates each time. The key consideration is whether the new rate plus rebate offer a better deal than your existing terms

Read our refinancing guide for a step-by-step walkthrough.

Government Schemes and Support

The HKMC Mortgage Insurance Programme enables higher LTV borrowing at reasonable cost. HDB BTO-equivalent in Hong Kong is the Home Ownership Scheme (HOS), which provides below-market-price flats to eligible residents. The HKMC also operates a Reverse Mortgage Programme for retirees and a SME Financing Guarantee Scheme. Public housing tenants can access the Tenants Purchase Scheme to buy their rented units at a discount

Check our government grants guide for the latest programmes and eligibility details.

Tips for Getting the Best Deal

Always apply to at least 3-4 banks to leverage competing offers — banks actively try to win your business with better rates and rebates. Choose an H-plan (HIBOR-based with Prime cap) for the best of both worlds. Factor in the MIP premium when calculating total costs if borrowing above 60% LTV. Consider a mortgage broker for access to the best current deals across all banks. Be aware that cash rebates may need to be repaid if you refinance within the clawback period (usually 2-3 years)

Next Steps

Use our mortgage calculator to model different scenarios, read our property buying guide for the full purchase process, or browse Hong Kong FAQs for quick answers.