New measures on mortgage






Residential property


Loan-to-value

Applicants who have not borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application

Value of properties/Types of properties
Maximum LTV Ratio
Applicants’ income mainly derived in HKApplicants’ income mainly derived from outside of HK
<$10 million60%
( subject to a loan cap of HK$5 million )
50%
( subject to a loan cap of HK$4 million )
>=$10 million50%40%
Non-owner occupied residential properties and residential properties held by companies50%40%


LTV for Net-worth-based Leading Application

Residential propertiesLTV Caps
Regardless of value40%


Applicants who have borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application

Value of properties/Types of propertiesMaximum LTV Ratio
Applicants’ income mainly derived in HKApplicants’ income mainly derived from outside of HK
<$10 million50%40%
(subject to a loan cap of
HK$4 million )
( subject to a loan cap of
HK$3 million )
>=$10 million40%30%
Non-owner occupied residential properties
and residential properties held by companies
40%30%


LTV for Net-worth-based Leading Application

Residential propertiesLTV Caps
Regardless of value30%


Mortgage Insurance Plan (MIP)

Property valueMaximum LTV Ratio
<=$4 million80% or 90%*
>$4 million but <$4.5 million80%至90%*
(max loan cap of $3.6 million)
>=$4.5 million but <=$6 million80%
(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) borrowers and/or guarantors 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%


Debt-to-income (DTI) Ratio and Stressed-DTI



DTI Ratio (Self-use)DTI Ratio (Non-self-use)
Applicant’s income mainly derived in HKApplicant’s income mainly derived from outside of HKApplicant’s income mainly derived in HKApplicant’s income mainly derived from outside of HK
Applicants who have not borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application
DTI Ratio50%40%40%30%
Stressed-DTI (Assuming a 3% hike in interest rate)60%50%50%40%
Applicants who have borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application
DTI Ratio40%30%40%30%
Stressed-DTI (Assuming a 3% hike in interest rate)50%40%50%40%


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



DTI Ratio (Self-use)DTI Ratio (Non-self-use)
Applicant’s income mainly derived in HKApplicant’s income mainly derived from outside of HKApplicant’s income mainly derived in HKApplicant’s income mainly derived from outside of HK
Applicants who have not borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application
DTI Ratio45%35%35%25%
Stressed-DTI (Assuming a 3% hike in interest rate)55%45%45%35%
Applicants who have borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application
DTI Ratio35%25%35%25%
Stressed-DTI (Assuming a 3% hike in interest rate)45%35%45%35%



New Ad Valorem Tax(AVD) (Apply for Residential property) 

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.

CategoryRate
Residential property15% of purchase price


New Ad Valorem Tax(AVD) (Scale 2) (Apply for Residential property)

Property Price (HK$)Rate (HK$)
ExceedsDoes not exceed
$2,000,000$100
$2,000,000$2,351,760$100 + 10% of excess over $2,000,000
$2,351,760$3,000,0001.50%
$3,000,000$3,290,320$45,000 + 10% of excess over $3,000,000
$3,290,320$4,000,0002.25%
$4,000,000$4,428,570$90,000 + 10% of excess over $4,000,000
$4,428,570$6,000,0003.00%
$6,000,000$6,720,000$180,000 + 10% of excess over $6,000,000
$6,720,000$20,000,0003.75%
$20,000,000$21,739,120$750,000 + 10% of excess over $20,000,000
$21,739,1204.25%
For more details, please refer to Inland Revenue Department website.


Special Stamp Duty(SSD)

With effect from 20 November 2010, any residential property acquired on or after 20 November 2010, either by an individual or a company (regardless of where it is incorporated), and resold within 24 months (the property was acquired on or after 20 November 2010 and before 27 October 2012) or 36 months (the property was acquired on or after 27 October 2012), will be subject to a Special Stamp Duty (SSD). SSD is calculated by reference to the stated consideration or the market value of the property (whichever is the higher), at the following rates for different holding periods of the property by the seller or transferor before disposal.

Holding periodRate
<=6 months20%
>6 months but <=12 months15%
>12 months but <=36 months10%


Buyer Stamp Duty (BSD)

With effect from 27 October 2012, unless specifically exempted, except where the purchaser or the transferee is a Hong Kong permanent resident (HKPR). Buyer’s Stamp Duty (BSD) is payable on an agreement for sale or a conveyance on sale executed for the acquisition of any residential property. BSD is charged at 15% on the stated consideration or the market value of the property (whichever is the higher).

Applicants / CompaniesRate
Non Hong Kong permanent residents, local or overseas companies15%

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.

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Commercial and industrial properties

Loan-to-value

Applicants who have not borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application

Value of properties/Types of properties

Maximum LTV Ratio

Applicants’ income mainly derived in HK

Applicants’ income mainly derived from outside of HK

Regardless of value

40%

30%


LTV for Net-worth-based Leading Application

Industrial properties

LTV Caps

Regardless of value

30%


Applicants who have borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application

Value of properties/Types of properties

Maximum LTV Ratio

Applicants’ income mainly derived in HK

Applicants’ income mainly derived from outside of HK

Regardless of value

30%

20%


LTV for Net-worth-based Leading Application

Industrial properties

LTV Caps

Regardless of value

20%


Debt-to-income (DTI) Ratio and Stressed-DTI Ratio

 

DTI Ratio (Self-use)

Applicant’s income mainly derived in HK

Applicant’s income mainly derived from outside of HK

Applicants who have not borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application

DTI Ratio

40%

30%

Stressed-DTI (Assuming a 3% hike in interest rate)

50%

40%

Applicants who have borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application

DTI Ratio

40%

30%

Stressed-DTI (Assuming a 3% hike in interest rate)

50%

40%


Repayment period

A maximum repayment period of 30 years

Ad Valorem Tax(AVD) (Scale 1) (Apply for Commercial and Industrial Properties)

Ad valorem stamp duty (AVD)

Rate

Property Price

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%


For more details, please refer to Inland Revenue Department website.


Stamp Duty Payment

Settle the stamp duty payment upon signing the “Agreement for Sale and Purchase”.

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.

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Car park space

Loan-to-value

Applicants who have not borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application

Value of properties/Types of properties

Maximum LTV Ratio

Applicants’ income mainly derived in HK

Applicants’ income mainly derived from outside of HK

Regardless of value

40%

30%



LTV for Net-worth-based Leading Application

Industrial properties

LTV Caps

Regardless of value

30%



Applicants who have borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application

Value of properties/Types of properties

Maximum LTV Ratio

Applicants’ income mainly derived in HK

Applicants’ income mainly derived from outside of HK

Regardless of value

30%

20%



LTV for Net-worth-based Leading Application

Industrial properties

LTV Caps

Regardless of value

20%



Debt-to-income (DTI) Ratio and Stressed-DTI



DTI Ratio (Self-use)DTI Ratio (Non-self-use)
Applicant’s income mainly derived in HKApplicant’s income mainly derived from outside of HKApplicant’s income mainly derived in HKApplicant’s income mainly derived from outside of HK
Applicants who have not borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application
DTI Ratio50%40%40%30%
Stressed-DTI (Assuming a 3% hike in interest rate)60%50%50%40%
Applicants who have borrowed or guaranteed other outstanding mortgage(s) at the time of making a mortgage application
DTI Ratio40%30%40%30%
Stressed-DTI (Assuming a 3% hike in interest rate)50%40%50%40%





Repayment period

A maximum repayment period of 15 years


Ad Valorem Tax(AVD) (Scale 1) (Apply for Commercial and Industrial Properties)

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%


For more details, please refer to Inland Revenue Department website.

Stamp Duty Payment

Settle the stamp duty payment upon signing the “Agreement for Sale and Purchase”.

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.

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Unit 1803, 18/F, Tower I,
Admiralty Centre, 18 Harcourt Road, Admiralty, HK

Office hours:
9:00 am to 6:00 pm (Mon to Fri)
Closed on Saturday,Sunday and Public Holidays