Hong Kong mortgages: how much you can borrow

If you are buying a residential property in Hong Kong, the maximum you can borrow from a bank is 70% of the property's market value — specifically, the lower of the purchase price and the bank's valuation. This single, standardised loan-to-value (LTV) cap applies to all residential properties, regardless of price or whether you intend to live in the flat yourself. The debt-servicing ratio (DSR) limit is 50% of your gross monthly income. These rules, set by the Hong Kong Monetary Authority (HKMA), took effect for any provisional sale and purchase agreement signed on or after 16 October 2024, and revert to the pre-2009 framework.

The loan-to-value cap: a single 70% limit

Before October 2024, the maximum LTV depended on the property's value and your purpose (self-use or investment). Higher-value flats had lower caps, and non-self-use properties faced stricter limits. That ladder has been removed. For transactions with a provisional agreement signed on or after 16 October 2024, the maximum LTV is 70% for all residential properties, whether you will live there or rent it out.

This means you need a down payment of at least 30% of the property's price — or, more precisely, 30% of the lower of the agreed price and the bank's valuation. If the bank values the flat below what you agreed to pay, the loan is calculated on that lower figure, and your cash down payment effectively rises.

The same 70% cap applies if the bank assesses your loan based on your net worth rather than your income. Previously, net-worth-based lending was capped at 60%; it is now aligned at 70%.

What this means for your money: For a hypothetical HK$10 million flat, the maximum loan is HK$7 million, leaving you to find HK$3 million in cash. If the bank values the flat at only HK$9.5 million, the loan drops to HK$6.65 million, and your cash requirement becomes HK$3.35 million.

The debt-servicing ratio limit: 50% of income

Banks must also ensure your total monthly debt payments — the new mortgage, plus any other loans or credit card minimum payments — do not exceed 50% of your gross monthly income. This is the DSR limit. It applies equally to self-use and investment properties; the previous lower limit of 40% for non-self-use was raised to 50% in October 2024.

If you already have an outstanding mortgage or have guaranteed someone else's mortgage, the old rule that reduced the applicable LTV and DSR by 10 percentage points has been lifted. Your existing debts still count towards the DSR calculation, but the caps themselves are no longer penalised.

Worked example (hypothetical): Your gross monthly income is HK$80,000. The maximum monthly debt payment the bank will allow is HK$40,000. If you already pay HK$10,000 in car loan and credit card minimums, the mortgage payment can be at most HK$30,000. At a 4% interest rate over 30 years, that monthly payment supports a loan of roughly HK$6.3 million — which may be less than the 70% LTV cap would suggest.

Income assessment: salaried vs self-employed

How the bank calculates your income affects how much you can borrow.

• Salaried employees: Banks typically take your basic salary plus guaranteed bonuses. Variable bonuses, commission, and overtime are often averaged over 6 to 12 months, and may be discounted if they are not consistent. You will need recent payslips, tax returns (tax assessment notice), and bank statements showing salary credits.
• Self-employed applicants: Banks assess your profit, not your revenue. They usually require two to three years of audited accounts, profit and loss statements, and tax returns. Many banks apply a higher haircut — for example, using only 70% of declared profit — because self-employed income is considered less stable. Some lenders may require a larger down payment or a lower DSR in practice, even though the HKMA cap is 50%.

If you are self-employed, expect the bank to ask for more documentation and to be more conservative in its income calculation. A mortgage broker can help you identify which lender treats self-employed income most favourably.

Mortgage-in-principle vs formal approval

Before you make an offer, you can get a mortgage-in-principle (MIP) from a bank. This is a preliminary indication of how much the bank is willing to lend you, based on the information you provide. It is not a binding commitment, but it tells you your price range and strengthens your position when negotiating.

Formal approval happens after you have signed a provisional sale and purchase agreement. The bank will order a valuation of the property, verify your income and employment, and check your credit record. Only then does it issue a formal loan offer, which is binding for a specified period (usually 60 to 90 days).

The valuation is critical. The bank's surveyor will assess the flat's market value, and the loan is based on the lower of the purchase price and that valuation. If the valuation comes in below the price you agreed, your cash requirement increases. You cannot force the bank to lend on the agreed price.

Timeline relative to the provisional agreement

The sequence is:

1. You and the seller sign a provisional sale and purchase agreement (usually through an estate agent). You pay a deposit — typically 3–5% of the price.
2. Within 5 to 14 days (depending on the agreement terms), you sign the formal sale and purchase agreement and pay a further deposit, bringing the total to 10%.
3. You must apply for your mortgage immediately after signing the provisional agreement. Banks need time to process the valuation and your application — allow at least 2 to 4 weeks.
4. Completion (handover of keys and final payment) is usually 30 to 60 days after the formal agreement. Your mortgage must be approved and funds ready by that date.

If your mortgage falls through, you risk losing your deposit. This is why getting a mortgage-in-principle before you offer is essential, and why you should not rely on the maximum LTV if your income is tight.

Related topics covered elsewhere

This page covers the core borrowing limits. For deeper detail on specific areas, see the separate guides on:

• Loan-to-value limits and down payment: How the LTV cap interacts with different property types, and what happens if the valuation is low.
• The mortgage stress test and debt-servicing ratio: The HKMA suspended its prescribed stress test (a 200-basis-point interest rate rise) from 28 February 2024. Banks still assess affordability under their own standards, but there is no mandated stressed-DSR test currently. Confirm with your bank what internal stress test they apply.
• The Mortgage Insurance Programme: If you cannot manage a 30% down payment, the Mortgage Insurance Programme may allow you to borrow up to 80% or 90% for self-use properties, subject to an extra premium. This is separate from the HKMA's standard LTV cap.
• HIBOR vs prime: Your choice of interest rate benchmark affects your monthly payment and how much you can borrow, because the DSR calculation uses the initial rate.

What to check and do next

All limits described here are based on HKMA rules effective from 16 October 2024. Banks may apply their own tighter criteria, and the HKMA can change these rules. Before you commit:

• Verify the current LTV and DSR limits with the HKMA residential mortgage guidelines directly.
• Get a mortgage-in-principle from at least two banks to compare how they assess your income and what interest rate they offer.
• Ask each bank what internal stress test they apply, if any, and how it affects the maximum loan.
• If you are self-employed, ask specifically how they calculate your income and whether they require a larger down payment.
• Factor in stamp duty, legal fees, and agent commission — these are not covered by the mortgage and must be paid in cash.