New Measures on tightening mortgage application        
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  1. Residential property

Loan-to-value

Value of properties /
Types of properties
Maximum LTV Ratio
Applicants・ income mainly derived in HK Applicants・ income mainly derived from outside HK
First property
<$7 million 60% 50%
>=$7 million but <$10 million 60%
(max loan cap of
$5 million)
50%
(max loan cap of
$4 million)
>=$10 million 50% 40%
 
Second property
<$7 million 50% 40%
>=$7 million but <$10 million 50%
(max loan cap of
$4 million)
40%
(max loan cap of
$3 million)
>=$10 million 40% 30%
     
Non-owner occupied residential properties and residential properties held by companies 40% 30%
 
 

LTV for Net-worth-based Leading Application

Property Maximum LTV Ratio
First property 40%
Second property 30%
 
 

Repayment period of primary residential property

  
 

Mortgage Insurance Plan (MIP)

Property value Maximum LTV Ratio
<=$4 million 80% or 90%*
>$4 million but <$4.5 million 80% to 90%
(max loan cap of $3.6 million)
>=$4.5 million but <=$6 million 80%
(max loan cap of $4.8 million)
Not accepted the MIP application if the borrowers whose income is derived mainly from outside Hong Kong
*Only applicable to application with (i) all mortgagors not holding any residential properties in Hong Kong
at the time of application; (ii) all applicants being regular salaried persons; and
(iii) maximum debt-to-income ratio of 45%
 

New Ad Valorem Tax (AVD)

A new flat rate of 15 per cent for the ad valorem stamp duty (AVD) chargeable on transactions for residential property. Except for specified exemptions, the new rate applies to all acquisitions of residential property by individuals or companies. The major exemption is where the buyer is a Hong Kong Permanent Resident acting on his/her own behalf and is not a beneficial owner of any other residential property in Hong Kong at the time of acquisition of a residential property. Under such circumstances, the new AVD rate will not apply and the relevant transaction is only subject to the lower AVD rates at Scale 2.
 

Special Stamp Duty (SSD)

Holding period Rate
<=6 months 20%
>6 months but <=12 months 15%
>12 months but <=36 months 10%
 
 

Buyer Stamp Duty (BSD)

Applicants / Companies Rate
Non Hong Kong permanent residents, local or overseas companies 15%
 

Debt-to-income (DTI) Ratio

Property DTI Ratio Limit (Self-use) DTI Ratio Limit (Non Self-use)
First property 50% 40%
Second property 40% 40%

 

Stressed-DTI

Property DTI Ratio Limit (Self-use) DTI Ratio Limit (Non Self-use)
First property 60% 50%
Second property 50% 50%
Based on 3% interest rate hike


Debit-to-income (DTI) Ratio (If Additional Financing results in total mortgage finance amounting to 20 percentage points over the normal permissible LTV)

Property DTI Ratio Limit (Self-use) DTI Ratio Limit (Non Self-use)
First property 45% 35%
Second property 35% 35%

 

Stressed-DTI Ratio (If Additional Financing results in total mortgage finance amounting to 20 percentage points over the normal permissible LTV)

Property DTI Ratio Limit (Self-use) DTI Ratio Limit (Non Self-use)
First property 55% 45%
Second property 45% 45%
Based on 3% interest rate hike
 
 
 
 
  1. Commercial and Industrial Properties
 

Loan-to-value (LTV)

Property Maximum LTV Ratio
Applicants’ income mainly derived in HK Applicants’ income mainly derived from outside HK
First Property 40% 30%
Second Property 30% 20%
 
 

LTV for Net-worth-based Leading Application

Property Maximum LTV Ratio
First property 30%
Second property 20%
 
 

Ad Valorem Tax (AVD)

Ad valorem stamp duty (AVD)
Property Price Rate
Exceeds Does not exceed
- $2,000,000 1.5%
$2,000,000 $2,176,470 $30,000 + 20% of excess over $2,000,000
$2,176,470 $3,000,000 3%
$3,000,000 $3,290,330 $90,000 + 20% of excess over $3,000,000
$3,290,330 $4,000,000 4.5%
$4,000,000 $4,428,580 $180,000 + 20% of excess over $4,000,000
$4,428,580 $6,000,000 6%
$6,000,000 $6,720,000 $360,000 + 20% of excess over $6,000,000
$6,720,000 $20,000,000 7.5%
$20,000,000 $21,739,130 $1,500,000 + 20% of excess over $20,000,000
$21,739,130 - 8.5%
 
 

Stamp Duty Payment

 
 

Debt-to-income (DTI)

Property DTI Limit
First property 40%
Second property 40%
 
 

Stressed-DTI

Property Stressed DTI Limit
First property 50%
Second property 50%
Based on 3% interest rate hike

 

Repayment period


 
  1. Car Park Space
 

Loan-to-value (LTV)

Property Maximum LTV Ratio
Applicants’ income mainly derived in HK Applicants’ income mainly derived from outside HK
First Property 40% 30%
Second Property 30% 20%
 
 

LTV for Net-worth-based Leading Application

Property Maximum LTV Ratio
First property 30%
Second property 20%
 

Debt-to-income (DTI) Ratio

Property DTI Ratio Limit (Self-use) DTI Ratio Limit (Non Self-use)
First car park* 50% 40%
Second car park 40% 40%

 

Stressed-DTI Ratio

Property DTI Ratio Limit (Self-use) DTI Ratio Limit (Non Self-use)
First car park* 60% 50%
Second car park 50% 50%
Based on 3% interest rate hike

 

Repayment period

 
 
The above information is for reference only. Information as of 19 May 2017.
All terms and conditions are subject to HKMA, HKMC and Inland Revenue Department’s final approval.
For details, please refer to relevant websites.