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Affordability

Monthly Repayment
$35,767
Calculate based on actual interest rate
$71,534
Calculate based on assumed interest rate
$72,610

$35,767

per month

Created with Highcharts 9.0.1
Down Payment$800,000
Total Loan$7,380,000
Stamp Duties$240,000
Other Fees$90,000
Min. Monthly Income Requirement

Calculate based on actual interest rate

$71,534

Calculate based on assumed interest rate

$72,610
Property Price
HK$
Loan amount
HK$

Mortgage insurance

Single financed $872 Total: $180,000
Interest rate
P=6.125%
-
Or

P = Prime rate (Best Lending Rate), the benchmark interest rate

Repayment Period

Adjustable Assumed Interest Rate and Monthly Repayment

%
Assumed Interest Rate
%4.250%
$
Monthly Repayment
+$538
(+1.5%)
$
Min. Monthly Income Requirement
Calculate based on actual interest rate$71,534
Calculate based on assumed interest rate$72,610

If the buyer fails to fulfil the income requirement, please call 3196 6666 for further enquiry.

Agent commission
HK$
Legal fee
HK$
Renovation costs
HK$
Cash rebate

What is a Mortgage Calculator?

A mortgage calculator is a tool that allows potential buyers to quickly estimate monthly mortgage payments, required income, and other financial information.
It calculates the monthly payment based on data input by the buyer, such as property price, loan-to-value ratio, interest rate, and repayment period.
By adjusting the input data, this tool can also be used as a Home Ownership Scheme (HOS) mortgage calculator and mortgage interest calculator.

Information Needed for Using a Mortgage Calculator

When using a mortgage calculator, you need to prepare the following information:

  • Property price
  • Expected loan-to-value ratio
  • Mortgage interest rate
  • Mortgage term
  • Monthly income (for calculating the debt-to-income ratio)

Mortgage Calculation Formula

As borrowers repay the loan monthly, the interest decreases accordingly. The formula for calculating the monthly payment is as follows:

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1]

Where:

  • M = Monthly payment
  • P = Mortgage principal
  • i = Monthly interest rate (Annual rate ÷ 12)
  • n = Total number of payments (Term × 12)

Mortgage Calculation Example

Suppose you're buying a property worth HKD 5 million, with a 70% loan-to-value ratio, 3.875% annual interest rate, and a 25-year repayment term.

Mortgage principal (P) = 5 million × 70% = HKD 3.5 million
Monthly interest rate (i) = 3.875% ÷ 12 = 0.323%
Total number of payments (n) = 25 × 12 = 300 months

Inputting this data into the mortgage calculator, the monthly payment is approximately HKD 18,209.57.

Loan-to-Value Ratio and Loan Amount

The loan-to-value ratio directly affects your mortgage application amount. According to the latest regulations:

  • Property value up to HKD 10 million: Maximum 90% LTV
  • Property value over HKD 10 million to HKD 11.25 million: Maximum 80% - 90% LTV
  • Property value over HKD 11.25 million to HKD 15 million: Maximum 80% LTV
  • Property value over HKD 15 million to HKD 17.15 million: Maximum 70% - 80% LTV
  • Property value over HKD 17.15 million to HKD 30 million: Maximum 70% LTV
  • Property value over HKD 30 million to HKD 35 million: Maximum 70% LTV
  • Property value over HKD 35 million: Maximum 70% LTV

Note: The actual loan-to-value ratio may vary depending on individual circumstances. It's recommended to consult a professional mortgage advisor for a more accurate assessment.

Debt-to-Income Ratio (DSR)

DSR is an important indicator for banks to assess your repayment ability:

DSR = (Total monthly debt payments ÷ Monthly income) × 100%

Generally, DSR should not exceed 50%.
For example, if your monthly income is HKD 45,000 and monthly mortgage payment is HKD 13,000, the DSR would be 28.89%.

Special Mortgage Situations

Self-employed Individuals

Maximum 70% LTV, can reach 80% through mortgage insurance.

Rental Properties

Maximum LTV is 70%, with 70% of rental income counted as income.

Mortgage Interest Calculation

Buyers need to input the following information:

  • Property price
  • Expected loan-to-value ratio
  • Mortgage interest rate
  • Mortgage term

The calculation results will include:

  • Monthly payment amount
  • Total interest paid
  • Yearly breakdown of interest and principal repayments

This helps buyers understand the total amount of interest they will pay over the entire mortgage term.

Home Ownership Scheme (HOS) Mortgage Calculation

Buyers need to modify the down payment information according to HOS conditions:

HOS Flats Without Premium Paid

  • Green Form applicants: Maximum 95% LTV
  • White Form applicants: Maximum 90% LTV

HOS Flats With Premium Paid

Can be traded on the open market, with LTV ratios similar to private properties.

Mortgage Repayment Term Calculation

The mortgage repayment term directly affects the monthly payment and total interest paid.

Maximum Repayment Term

According to Hong Kong Monetary Authority (HKMA) regulations, the maximum mortgage repayment term is 30 years.
However, the actual approved term is usually shorter, depending on the applicant's age and property age.

Calculating Repayment Term Based on Applicant's Age

Banks generally use the following method to calculate the maximum repayment term:

  • Common practice: 75 - Applicant's age
  • Some banks: 80 - Applicant's age

For example: If the applicant is 50 years old, the maximum repayment term would be: 75 - 50 = 25 years (or 80 - 50 = 30 years, depending on bank policy)

Calculating Based on Property Age

In addition to the applicant's age, banks also consider the property age:

For 60% LTV or below:

  • Large housing estates: 75 - Building age
  • Old single-block buildings in old districts: Less than 70 - Building age
  • Village houses: 65 - Building age

For LTV above 60%:

Banks may use a more conservative calculation method.

Mortgage FAQ
A mortgage loan is when a borrower borrows money from a financial institution to purchase a property, using that property as collateral. The borrower typically repays the loan through regular payments.
Besides applying directly to banks or other financial institutions, you can also apply to multiple banks at once through a mortgage referral company.
When applying for a mortgage from a bank, the maximum loan-to-value ratio is 70%. If you want to borrow a higher percentage, you need to apply for mortgage insurance and pay the insurance premium.
For residential properties, regardless of the property price, the maximum loan-to-value ratio is 70%.
For non-residential properties such as commercial and industrial properties, the maximum loan-to-value ratio is 70%.
Many retirees who want to obtain a mortgage usually opt for asset-based mortgage approval. Currently, the maximum loan-to-value ratio is 70%. If applying for mortgage insurance, what is the maximum loan-to-value ratio? For properties valued at HK$10 million or below, the maximum loan-to-value ratio with mortgage insurance is 90%. For properties valued between HK$10 million and HK$11.25 million, it's 80-90% (with a loan cap of HK$9 million). For properties valued above HK$11.25 million up to HK$15 million, it's 80%. For properties valued between HK$15 million and HK$17.15 million, it's 70-80% (with a loan cap of HK$12 million). For properties valued between HK$17.15 million and HK$30 million, the maximum is 70%.
Each bank has slightly different requirements, but common documents include identification documents, income proof, tax bills, employment verification, bank statements showing income, and the provisional sale and purchase agreement.
The most common mortgage plans in the market currently include H-based mortgages, P-based mortgages, and fixed-rate mortgages.
The "H" in H-based mortgage stands for HIBOR (Hong Kong Interbank Offered Rate). It's a mortgage plan that fluctuates based on the interbank offered rate.
The "P" in P-based mortgage stands for Prime Rate, which is the basic lending rate each bank offers to its best customers. P-based mortgages are calculated based on each bank's own interest rate.
According to the Hong Kong Monetary Authority regulations, bank mortgage repayment periods can be up to 30 years.
There are many mortgage products in the market. You can decide whether to apply for a particular mortgage based on factors such as interest rates, loan terms, repayment methods, and whether there are high-interest savings accounts attached.
Taking out a mortgage requires paying interest. If you apply for mortgage insurance, you need to pay additional insurance premiums. Also, if you repay early within the penalty period, you may need to pay other fees.
Pre-approval is when a financial institution conducts a preliminary review of the borrower's financial and credit status before the formal loan application, to determine the possible loan amount and interest rate range.
To increase the chances of getting a mortgage loan, you need to maintain a good credit record, increase stable income, provide comprehensive loan application documents, reduce debt burden, etc.
You can switch to another bank's mortgage loan after the penalty period of your original mortgage, subject to loan terms and financial institution policies.
There are currently mortgage plans for different types of properties in the market, including private housing mortgages, HOS flat mortgages, village house mortgages, commercial and industrial property mortgages, and even parking space mortgages.
If you can't make payments on time, you may incur late fees and penalty interest, and it will negatively impact your credit record.