Mortgage Cash Rebates 2026 | Cash Rebates of Up to 2.9% — Which Bank Offers the Best Deal?

Mortgage cash rebates can help cover expenses such as renovation costs and legal fees. Recently, some banks have offered cash rebates as high as 2.9%. When applying for a mortgage, borrowers will often receive cash rebate offers from banks. But how is the rebate calculated? M Referral Mortgage explains everything you need to know about mortgage cash rebates, helping you better understand how they work when applying for a mortgage.

Key Points

Some small and medium-sized banks have recently launched mortgage cash rebates of up to 2.9%, helping borrowers save on mortgage interest and other property-purchase costs.

However, there are several important details to note when applying for a mortgage cash rebate. For example, when the cash rebate exceeds 1%, the entire rebate amount must be deducted from the approved loan amount.

Latest Mortgage Cash Rebate News-Updated October 2026

What Is a Mortgage Cash Rebate?

A mortgage cash rebate is an incentive offered by banks to attract more mortgage business. It is generally calculated as a percentage of the mortgage loan amount.

Cash rebates may be available for:

- New mortgage applications
- Mortgage refinancing
- Private residential properties
- Home Ownership Scheme properties
- Old buildings and village houses
- H-plan mortgages
- P-plan mortgages

In general, the larger the loan amount, the more favourable the cash rebate may be.

When Is the Cash Rebate Paid Into the Borrower’s Account?

The cash rebate is usually transferred to the borrower’s bank account within several weeks after the mortgage is drawn down.

How Is the Cash Rebate Calculated?

Mortgage insurance enables eligible homebuyers to obtain a high loan-to-value mortgage of up to 90%. However, it is important to note that the mortgage insurance portion is not included when calculating the cash rebate.

Banks generally calculate the cash rebate based on:

> Property value × mortgage loan-to-value ratio, capped at 70% × cash rebate percentage

For example, if a bank offers a 2% cash rebate, and you purchase an HK$8 million property with a 70% mortgage:

- Mortgage loan amount: HK$8,000,000 × 70% = HK$5,600,000
- Cash rebate: HK$5,600,000 × 2% = HK$112,000

If you borrow more than 70% of the property value, the cash rebate calculation is generally capped at a 70% mortgage ratio.

For example, if you purchase the same HK$8 million property and obtain a 90% mortgage:

- Actual loan amount: HK$8,000,000 × 90% = HK$7,200,000
- Cash rebate calculation: HK$8,000,000 × 70% × 2%
- Cash rebate: HK$112,000

What Is the Difference Between a Cash Rebate of 1% or Less and One Above 1%?

The Hong Kong Monetary Authority imposes strict requirements on mortgage cash rebates.

If the cash rebate does not exceed 1%, it generally does not affect the borrower’s required down payment or approved loan amount.

However, if the cash rebate exceeds 1% of the property value, the entire rebate amount must be deducted from the approved mortgage loan amount when the bank assesses the mortgage ratio.

Example

Suppose you purchase a property valued at HK$6 million and apply for a 60% mortgage:

- Mortgage loan amount: HK$6,000,000 × 60% = HK$3,600,000
- Down payment: HK$6,000,000 − HK$3,600,000 = HK$2,400,000

If the bank offers a 1% cash rebate:

- Cash rebate: HK$3,600,000 × 1% = HK$36,000
- The down payment remains HK$2,400,000

However, if the bank offers a 1.9% cash rebate:

- Cash rebate: HK$3,600,000 × 1.9% = HK$68,400
- The approved mortgage loan amount is reduced by HK$68,400
- The down payment initially increases to HK$2,468,400

The bank will then pay the cash rebate to the borrower after the mortgage has been drawn down.

Is a Mortgage Cash Rebate Above 1% Still Worthwhile?

Although a cash rebate above 1% may initially increase the amount of money required for the down payment, the bank will generally pay the rebate to the borrower several weeks later.

In addition, the actual mortgage loan amount is reduced, which means that the borrower will pay interest on a smaller loan balance. Therefore, borrowers are generally not disadvantaged by choosing a higher cash rebate.

The main consideration is whether the buyer has sufficient short-term liquidity to cover the temporarily increased down payment. If the buyer has enough additional funds available, choosing a mortgage plan with a higher cash rebate may be more beneficial.

How to Obtain the Highest Mortgage Cash Rebate

To maximise your mortgage cash rebate, consider the following:

1. Compare Mortgage Offers From Different Banks

Some banks launch mortgage plans with higher cash rebates in order to gain market share. As the differences between banks’ cash rebate offers can be significant, it is important to compare mortgage plans carefully.

You may consider consulting a large mortgage intermediary, which can help you compare offers from multiple banks at the same time.

2. Green-Certified Properties May Qualify for Higher Rebates

Many banks offer green mortgage plans. If a property meets the relevant green-building or environmental assessment requirements, the borrower may be eligible for a green mortgage and receive an additional cash rebate or reward.

These offers may be more attractive than those available under standard mortgage plans. However, each bank may have a different list of eligible properties, so it is advisable to check with a mortgage specialist in advance to determine whether your property qualifies.

3. Additional Rebates May Be Available for Meeting Specific Requirements

Some banks offer additional mortgage incentives if the applicant meets certain conditions. These may include:

- Applying through an electronic channel
- Meeting a specified property transaction amount
- Reaching a designated mortgage loan amount
- Fulfilling other promotional requirements

4. Check the Required Loan Amount

Some banks only offer their highest cash rebate percentage when the mortgage loan reaches a specified amount. Therefore, it is important to check the relevant loan amount requirements before choosing a mortgage plan.

As bank mortgage offers can change frequently, the information above is for reference only. To find out how to obtain the most suitable cash rebate for your circumstances, contact M Referral Mortgage for the latest information.

Mortgage cash rebates are only one of the factors to consider when applying for a mortgage. If you have any questions about mortgage plans, please contact M Referral Mortgage at 3196 6688. Our mortgage specialists can provide advice tailored to your circumstances.

M Referral Mortgage has been rooted in Hong Kong for 25 years. Whether you have questions about applying for a Home Ownership Scheme mortgage, a private residential mortgage or mortgage refinancing—or are interested in personal loans or credit cards—you are welcome to complete the enquiry form and speak with our mortgage specialists.

Find out more about the latest mortgage rates and bank cash rebate offers.

Author: M Referral Editorial Department