Know how much you can borrow before you commit

For a residential mortgage, banks typically lend up to 40%–60% of the property value, depending on price, whether you are a first-time buyer, and your income and repayment capacity. Through the Mortgage Insurance Programme (MIP), eligible first-time buyers can borrow up to 90% within a price cap, in exchange for a mortgage insurance premium (paid once or spread into the loan).

A higher LTV means a smaller down payment but a larger monthly payment. Run our mortgage-payment and down-payment-timeline tools under a few LTV scenarios before deciding how much to borrow.

When approving a mortgage, banks calculate the Debt Servicing Ratio (DSR) — generally your monthly payment must not exceed 50% of income. They also run a stress test: assuming rates rise by 3 percentage points, your DSR must still stay within 50%–60%.

Self-employed, commission-based or newly employed borrowers often face stricter requirements and need more proof of income and a larger buffer. Stress-test your payment at "+3%" before you buy, so a rate rise does not sink the application.

Hong Kong mortgage rates are usually linked to HIBOR plus a bank spread. When HIBOR is above the rate implied by the Prime rate (the "cap"), your payment is charged at the cap — so there are two scenarios: the current rate and the capped rate.

Rates move with the market. Model both scenarios and keep a buffer for rate rises, so your payment never jumps past your budget.

Banks often offer a cash rebate, typically a percentage of the loan amount; but some rebates are tied to a "clawback period" — repaying early within that window may require returning part of the rebate. Budget separately for legal fees, valuation fees, fire insurance and mortgage insurance.

Do not chase the rebate alone. Compare rate, clawback period and total cost together — the rebate is one line, not the whole picture.

You can apply to a bank directly, or go through a licensed mortgage referral broker. A legitimate broker is paid by the bank (usually a percentage of the loan) and is free to the borrower. When choosing one, confirm their licence and check whether they compare multiple banks rather than pushing a single institution.

Be wary of anyone charging you a "referral fee" or promising "guaranteed approval" — licensed mortgage referral brokers are normally paid by the bank, not the borrower, and can never "guarantee" approval.