Here's What You Need to Know About the New Mortgage Rules in Hong Kong 2023

Jul 21 2023

On July 7th, the Hong Kong Monetary Authority (HKMA) in collaboration with the Hong Kong Mortgage Corporation (HKMC) implemented measures to relax mortgage rules to ease the down payment requirements for potential buyers. These changes benefit first-time buyers and owners looking to trade up by adjusting the loan-to-value (LTV) ratio.

Based on the Hong Kong Monetary Authority (HKMA) & the Hong Kong Mortgage Corporation's (HKMC) new policy, the key changes are as follows:

For residential properties intended for self-use:
Maximum loan-to-value (LTV) ratio will increase to 70% for properties valued up to HK$15 million.
Maximum loan-to-value (LTV) ratio will increase to 60% or for properties valued between HK$15 million and HK$30 million.
Maximum loan-to-value (LTV) ratio of 50% will remain unchanged for properties valued above HK$30 million.

Buyers can qualify for additional financing through The Hong Kong Mortgage Corporation’s Mortgage Insurance Programme (“MIP”), though the additional insurance may come at a premium depending on the loan amount. Given this, a buyer can further lower their down payment and increase the loan-to-value for a property under $30 million to the following levels:

Source: The Hong Kong Mortgage Corporation

Find your next dream home here, or message your OKAY.com consultant to explore potential properties.

Below is a selection of properties where buyers may benefit from the relaxed mortgage rules!