Best Mortgage Loan Rates & Cash Rebate


What is Mortgage Loan?
A mortgage is a loan that mortgage borrowers take out for house buying. If the repayments slip through, the lender can repossess the property and sell it. To avoid this from happening, it is important for mortgage borrowers to compare different mortgage offers and pick the one that is affordable.
HIBOR Rate (known as H Plan) is the benchmark interest rate for lending between banks within the Hong Kong market while Prime Rate (known as P Plan) is decided by individual banks. H Plan is reflective of the borrowing costs, so it fluctuates on a daily basis. A few years ago, HIBOR was low, so many applicants preferred H Plan over P Plan. However, HIBOR has increased a lot in recent years and many mortgage borrowers end up using the capped mortgage rate to repay their monthly mortgage. Given this situation, the interest rate of H Plan and P Plan are much closer now.
If you are like most people, you are very likely to be time deprived to conduct all the research on mortgage yourself. Thatâs where MoneySmart comes in. We provide free valuation and application service. You can apply for an array of plans and the application results will be available in just 9 working days. What's more, you can get up to a 1% rebate!
Compare Mortgage Loan Interest Rates
Bank | P Plan Interest Rates | H Plan Interest Rates | Cash Rebate |
---|---|---|---|
Bank Citibank | P Plan Interest RatesP(5.25%) - 2.75% = 2.5% | H Plan Interest RatesH+1.3% | Cash Rebate 1.2% |
Bank Standard Chartered | P Plan Interest RatesP(5.25%) - 2.75% = 2.5% | H Plan Interest RatesH+1.3% | Cash Rebate 1% |
Bank HSBC | P Plan Interest RatesP(5%) - 2.5% = 2.5% | H Plan Interest RatesH+1.3% | Cash Rebate 1% |
Bank Bank of China | P Plan Interest RatesP(5%) - 2.5% = 2.5% | H Plan Interest RatesH+1.3% | Cash Rebate 1% |
Bank Hang Seng Bank | P Plan Interest RatesP(5%) - 2.5% = 2.5% | H Plan Interest RatesH+1.3% | Cash Rebate 1% |
Bank Click Here for More Mortgage Plans | P Plan Interest Rates | Cash Rebate |
Get a personalised Mortgage Plan now!
Mortgage for different types of properties
HOS Mortgage

Second-hand Property Mortgage

Village House Mortgage

Uncompleted Buildings Mortgage

Tong Lau Mortgage

Public Housing Mortgage

Commercial Buildings Mortgage

Car Park Mortgage

Foreclosure Mortgage

Contact a MoneySmart Mortgage Specialist
Mortgage for different types of applicants
First-time home buyers
Non first-time home buyers
Homebuyers looking to switch homes
Civil Servants
Self-employed/ Applicants with No Fixed Income
Mortgage Rates, Stamp Duty and Lawyer Fees
Mortgage Rates
HIBOR Rate (known as H Plan) is the benchmark interest rate for lending among banks while Prime-based rate (known as P Plan) is decided by individual banks. H Plan comes with a cap limit to ensure you rate protection in case of fluctuations. For example, if H is H+1.1% with HIBOR as 0.5 and P-2.5% as cap limit, the interest rate ranges from 1.6% to 2.5%. From historical record, H Plan usually offers better interest rates. Even if it goes up, it comes down quickly and it almost never hits the rate of P Plan.


Stamp Duty
There are 3 main types of stamp duties:
- Ad Valorem Stamp Duty (AVD) for Residential Property
- Non-Residential Property Special Stamp Duty (SSD)
- Buyerâs Stamp Duty (BSD).
Hong Kong permanent residents who are first-time buyers are exempted from most of the stamp duties. Both Hong Kong permanent residents who are purchasing their first homes or switching homes are required to pay AVD at the time of purchase. If you are first-time buyers, the rate is 3%. If not, it is 15%. Moreover, special Stamp Duty (SSD) applies to any properties resold within 36 months or less to curb house flipping and BSD is an additional upfront tax on non-permanent-resident buyers.
Lawyer Fee


How do I choose a Mortgage Plan?


How to calculate Loan-to-Value (LTV) Ratio?
Applicantâs age

Age of the property

First-time buyers

Applicantâs Credit Score

Property Types

For Self-occupation or Renting

How to apply for loans with a high LTV ratio?
The exorbitant housing prices in Hong Kong means that a lot of the prospective buyers with limited down payment are keen to find out how to get a high LTV ratio. MoneySmart has summarised a table outlining the requirements for getting 90% and 80% LTV ratio.
Apply for 90% and 80% LTV ratio
Types of applicants | 90% LTV ratio | 80% LTV ratio | |
---|---|---|---|
Types of applicantsFirst-time Buyers | 90% LTV ratio First-time buyers (i.e. applicants who do not own a property at the time of application) can take out loans with 90% loan-to-value ratio for properties worth as much as HK$8,000,000 previously capped at HK$4,000,000. | 80% LTV ratio | |
Types of applicantsCompleted VS Off-Plan Properties | 90% LTV ratio HK$6,000,000 or above: completed properties. HK$6,000,000 or below: both completed and off-plan properties. | 80% LTV ratio | |
Types of applicantsFixed-pay VS Self-employed | 90% LTV ratio Applicants must be on fixed income, instead of commission and the income must be derived locally. | 80% LTV ratio Employees on irregular income or self-employed. | |
Types of applicantsSelf-occupation VS Renting | 90% LTV ratio Self-occupation | 80% LTV ratio Occupied by relatives: 80% Renting: 50% max | |
Types of applicantsStress Test | 90% LTV ratio DSR Limit= 50% | 80% LTV ratio |
Contact MoneySmart Mortgage Specialist to learn more about Mortage in Hong Kong
Tips for mortgage comparison
Cash Rebate
Loan Amount Will be Reduced Directly if Cash Rebate is in Excess of 1%

How do I apply for a Mortgage Plan?


The Mortgage Application process
Stress Test

HKMC requires prospective homebuyers to pass the stress test in order to secure a mortgage offer. The monthly repayment amount should be within 60% of the homebuyer's monthly income after 3% interest rate is added to the existing one. However, according to the 2019 policy address, passing the stress test is not a prerequisite for first-time buyers to secure a mortgage offer with a mortgage insurance programme. For non first-time buyers, however, passing the stress test is still a prerequisite for getting a mortgage.
The Mortgage Insurance Programme ('MIP')

What is the Mortgage Insurance Programme ('MIP')? Launched by The Hong Kong Mortgage Corporation Limited ('HKMC'), Mortgage Insurance Programme ('MIP') provides mortgage insurance to banks to offer mortgage loans with higher LTV ratio (80-90%) without taking additional credit risk. The premium can be paid in one go, yearly or in instalment calculated into the mortgage.
Valuation

Major banks provide free online evaluation to prospective mortgage borrowers so you get an idea of the property price easily. To avoid down valuation, you can get valuation from different banks for comparison or call the valuation department of the bank directly. How to handle a down valuation? You can take your best valuation and negotiate with the bank that you would like to apply. Moreover, some people may choose to apply for a personal loan for the additional down payment that they need to pay due to down valuation.
Why apply through MoneySmart?
The Best Mortgage Rates and Cash Rebate
Quick Mortgage Approval
No Hidden Charges
Contact a MoneySmart Mortgage Specialist Today to Apply for Mortgage


Apply for Mortgage today!
Applying for your Mortgage with MoneySmart
Get in touch with our mortgage team
Compare mortgage plans
MoneySmart will follow up on your enquiry and provide you with different mortgage plans to choose from
Apply online with required documents
Check the application form and sign it
Draw down your mortgage
Mortgage Applications FAQ
In general, how long does it take for a mortgage to be approved?
- Generally speaking, it usually takes 1-2 week(s) to get a mortgage approved. However, if applicants apply for a higher LTV ratio, it will require MIP providing mortgage insurance to banks, which will take an additional 1-2 week(s). Therefore, it usually wonât take more than a month to get your mortgage result.
What are the benefits of applying for a mortgage through MoneySmart?
- MoneySmart Mortgage Specialists help you compare numerous mortgage plans in one go and apply for a number of plans with a consolidated application form. MoneySmart Specialists can contact mortgage departments of each major bank directly, which can accelerate the application process. Whatâs more, MoneySmart will provide additional cash rebates, which can cut down your mortgage costs.
How to apply for a 90% LTV mortgage?
- LTV ratio is dependent on a number of factors , including different types of property and mortgage applicants. For example, first-time buyers could apply for up to 90% LTV ratio for property worth HK$8,000,000. Also, white form buyers of HOS, for example, could apply for 90% LTV mortgage.
What is mortgage insurance?
- If your property is worth under HK$6,000,000 and its loan-to-value ratio is over 60%, youâll need to apply to âmortgage insurance companiesâ for your mortgage insurance.
What is the maximum loan-to-value ratio for a mortgage?
- The current regulations of the Hong Kong government and HKMA state that the ceiling of a mortgage is based on the value of the property, ranging from 90% to 50%. The value of first-hand property is decided by developers; and the second-hand is decided by valuations. Youâll need to apply for different mortgage plans according to your financial status. You may also need a guarantor to apply for a mortgage.
Do banks offer additional incentives?
- Yes. It usually comes in below forms: âą Cash Rebate: Under the regulations of HKMA, if the cash rebate is more than 1% of the loan amount, it will be deducted from the final loan amount âą Mortgage LinkïŒIt is an account with an interest rate equivalent to the mortgage loan interest rate, allowing mortgage borrowers to offset part of your mortgage interest.
Will banks check my credit score report upon my mortgage application?
- Yes. Banks will usually check your credit record and credit score before approving your mortgage application. To improve your credit scores, you can Pay off your debts on time Avoid applying for numerous credit cards in a short period of time Build a good credit score Avoid relying on just one credit card Review your credit report regularly Check your credit report before applying for loans
Can I rent out a property on a normal mortgage?
- No. You must switch to a buy-to-let mortgage with 50% LTV (instead of 80/90%) in order to rent out your home. If you fail to do this, and get caught, you will be in breach of the terms and conditions of your mortgage - which was meant to be used for owner occupation. Then, lenders can recall your mortgage and request you to pay for relevant interest rates and admin fees.
Why is building inspection sometimes required for mortgage application?
- This is to check if there are any structural changes to the property, including illegal structures or subdivided units. If there is, a mortgage application will usually be rejected. Even if it is approved, it will affect the mortgage rates and term.
What are the benefits of joint mortgage applications?
- It will include two incomes, which makes it easier to pass the stress test. However, both applicants will lose first-time buyer status, making it impossible to apply for a high LTV ratio in the future.
Compare Mortgage Rates and Cash Rebate now!
Important Notice
Your action to give out any personal data in this page will constitute your consent that MoneySmart HK Limited(MS) will transfer your personal data to One Plus One Property Agency Limited to proceed your loan application. You understand that MS is acting as the referrer only and One Plus One Property Agency Limited will contact you for all further details in relation to your loan application. MS will not be liable for any kind of loss or damage arising from &/or in connection with your deal with One Plus One Property Agency Limited.