Affordable Property Value
HK$5,340,425Maximum loan amount
HK$3,340,425Monthly Repayment$15,000
Debt-to-income(DTI) Ratio
50.00%
Monthly Income
HK$
Affordable monthly loan amount (Debt-to-income ratio)
HK$
Down Payment
HK$
Interest rate
P=5.25%
-
Repayment Period
Please provide the following information (*mandatory)
Do you currently have an outstanding mortgage loan, either as guarantor or borrower?*
No
Mortgage Application by Company or Individual*
Individual
Are your income derived mainly in Hong Kong?*
Yes
The property is purchased for self-use?*
Yes
Property Type*
Completed Property
Cash Payment*
Yes
Total Monthly Debt Repayment Amount (Included 2nd mortgage)
HK$
The above information is for reference only. No guarantee or representation is given by Midland as to its accuracy, completeness and/or applicability. All terms and conditions are subject to HKMA, HKMC, Inland Revenue Department, financial institution's final announcement/approval. Information as of 16 October 2024.
Down Payment Requirements for Private Properties
According to current mortgage regulations, first-time homebuyers can obtain up to 90% mortgage for properties valued at HK$10 million or below. For properties over HK$12 million, the maximum mortgage ratio is 80%.
| Property Valuation (HKD) | Down Payment Requirement (First-time buyers with stable income) |
|---|---|
| 10 million or below | 10% of property value (90% mortgage available) |
| 10 million to 11.25 million | 10%-20% of property value (80% to 90% mortgage; maximum loan 9 million) |
| 11.25 million to 15 million | 20% of property value (80% mortgage) |
| 15 million to 17.15 million | 20%-30% of property value (70% to 80% mortgage; maximum loan 12 million) |
| 17.15 million to 30 million | 30% of property value (70% mortgage) |
Points to Note for High Loan-to-Value Mortgages
- Mortgage Insurance Premium: For a 90% mortgage with a 30-year repayment period, it's usually 4.35% of the loan amount.
- Payment Plan: Buyers choosing immediate payment plans may receive more discounts than those opting for stage payment plans.
- Market Opportunities: In recent years, many small units under HK$5 million have appeared. If suitable down payment funds are available, early preparation should be considered.
Process of Buying Second-hand Properties
1. Property Viewing and Inspection Stage
- Search for desired properties through online platforms and real estate agents
- Conduct site visits, evaluate unit conditions, and fill out viewing records
- Research property valuations using bank valuation tools and market trend indicators
2. Negotiation and Contract Signing Stage
- Sign the provisional sale and purchase agreement, pay the initial deposit (usually 3-5% of the property price)
- Begin the mortgage application process based on the provisional agreement
- Sign the formal sale and purchase agreement within 14 days, pay additional deposit to reach 10% of the property price
3. Completion and Property Transfer Stage
- Pay stamp duty within the specified 30-day period
- Coordinate property handover, including final inspection and document preparation
- Complete the property transfer process by signing legal documents and paying the balance of the property price
- Purchase appropriate insurance, including fire and home insurance
Guide to Buying First-hand Properties
1. Financial Preparation
- Estimate total property purchase costs
- Inquire about mortgage options from different banks
- Determine actual budget based on personal financial capacity
2. Information Gathering
- Analyze sales brochures available before the sale
- Review comprehensive property information
- List preferred units
3. Preparation for Sale Day
- Check pricing information and sales arrangements
- Understand the unit selection process and schedule
- Visit show flats
- Submit registration of intent to purchase
4. Unit Selection and Contract Signing
- Participate in the unit selection process and choose desired unit
- Sign the provisional sale and purchase agreement and pay the initial deposit (usually 3-5% of the property price)
- Decide on immediate payment or stage payment plan
- Submit mortgage application to the bank
- Sign the formal sale and purchase agreement within the specified time
- Pay the balance of the down payment
- Handle stamp duty and legal fees
5. Completion and Property Handover
- Complete the transaction before the specified date
- Budget for additional costs, such as management fees and renovation deposits
- Conduct detailed property inspection
- Complete necessary administrative procedures
- Obtain keys and property ownership documents
Affordability FAQ