1. Residential property

Loan-to-value

Value of properties / Types of properties	Maximum LTV Ratio
	Applicants’ income mainly derived in HK	Applicants’ income mainly derived from outside HK
First property
<$7 million	60%	50%
>=$7 million but <$10 million	60% (max loan cap of $5 million)	50% (max loan cap of $4 million)
>=$10 million	50%	40%
Second property
<$7 million	60%	40%
>=$7 million but <$10 million	60% (max loan cap of $5 million)	40% (max loan cap of $2 million)
>=$10 million	50%	30%
Non-owner occupied residential properties and residential properties held by companies	50%	40%

 
 

LTV for Net-worth-based Leading Application

Property	Maximum LTV Ratio
First property	40%
Second property	30%

 
 

Repayment period of primary residential property

• A maximum repayment period of 30 years

  
 

Mortgage Insurance Plan (MIP)

Property value	Maximum LTV Ratio
<=$4 million	80% or 90%*
>$4 million but <$4.5 million	80% to 90% (max loan cap of $3.6 million)
>=$4.5 million but <=$6 million	80% (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) all mortgagors 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%

 
 

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

Category	Rate
Residential property	15% of purchase price

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.

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

Property Price (HK$)		Rate (HK$)
Exceeds	Does not exceed
-	$2,000,000	$100
$2,000,000	$2,351,760	$100 + 10% of excess over $2,000,000
$2,351,760	$3,000,000	1.50%
$3,000,000	$3,290,320	$45,000 + 10% of excess over $3,000,000
$3,290,320	$4,000,000	2.25%
$4,000,000	$4,428,570	$90,000 + 10% of excess over $4,000,000
$4,428,570	$6,000,000	3.00%
$6,000,000	$6,720,000	$180,000 + 10% of excess over $6,000,000
$6,720,000	$20,000,000	3.75%
$20,000,000	$21,739,120	$750,000 + 10% of excess over $20,000,000
$21,739,120	-	4.25%

1) The AVD rates will apply to Hong Kong Permanent Resident buyers who are not beneficial owners of any other residential property in Hong Kong at the time of acquisition of a residential property. This also applies to change of residence cases.

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

 

Special Stamp Duty (SSD)

Holding period	Rate
<=6 months	20%
>6 months but <=12 months	15%
>12 months but <=36 months	10%

 
 

Buyer Stamp Duty (BSD)

Applicants / Companies	Rate
Non Hong Kong permanent residents, local or overseas companies	15%

 

Debt-to-income (DTI) Ratio

Property	DTI Ratio Limit (Self-use)	DTI Ratio Limit (Non Self-use)
First property	50%	40%
Second property	40%	40%

 

Stressed-DTI

Property	DTI Ratio Limit (Self-use)	DTI Ratio Limit (Non Self-use)
First property	60%	50%
Second property	50%	50%

Based on 3% interest rate hike

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

Property	DTI Ratio Limit (Self-use)	DTI Ratio Limit (Non Self-use)
First property	45%	35%
Second property	35%	35%

 

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

Property	DTI Ratio Limit (Self-use)	DTI Ratio Limit (Non Self-use)
First property	55%	45%
Second property	45%	45%

Based on 3% interest rate hike
 
 

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2. Commercial and Industrial Properties

 

Loan-to-value (LTV)

Property	Maximum LTV Ratio
	Applicants’ income mainly derived in HK	Applicants’ income mainly derived from outside HK
First Property	40%	30%
Second Property	40%	20%

 
 

LTV for Net-worth-based Leading Application

Property	Maximum LTV Ratio
First property	40%
Second property	30%

 
 

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
$2,170,470	$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”.

 
 

Debt-to-income (DTI)

Property	DTI Limit
First property	40%
Second property	40%

 
 

Stressed-DTI

Property	Stressed DTI Limit
First property	50%
Second property	50%

Based on 3% interest rate hike

 

Repayment period

• A maximum repayment period of 30 years
   

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3. Car Park Space

 

Loan-to-value (LTV)

Property	Maximum LTV Ratio
	Applicants’ income mainly derived in HK	Applicants’ income mainly derived from outside HK
First Property	40%	30%
Second Property	40%	20%

 
 

LTV for Net-worth-based Leading Application

Property	Maximum LTV Ratio
First property	40%
Second property	30%

 

Debt-to-income (DTI) Ratio

Property	DTI Ratio Limit (Self-use)	DTI Ratio Limit (Non Self-use)
First car park*	50%	40%
Second car park	40%	40%

 

Stressed-DTI Ratio

Property	DTI Ratio Limit (Self-use)	DTI Ratio Limit (Non Self-use)
First car park*	60%	50%
Second car park	50%	50%

Based on 3% interest rate hike

 

Repayment period

• A maximum repayment period of 15 years

 
 
The above information is for reference only. Information as of 27 February 2015.
All terms and conditions are subject to HKMA, HKMC and Inland Revenue Department’s final approval. For details, please refer to relevant websites.