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An Overview of Loan-to-value Ratio for Mortgages in Hong Kong
Blog | March 26, 2025
The maximum loan-to-value ratio (LTV ratio) for mortgages provided by banks depends on the property value. The actual approved loan-to-value ratio varies based on stress testing, property valuation, the borrower’s financial condition and the property type.
LTV ratios differ between first-time and non-first-time homebuyers, as well as for private properties, village houses and public housing. Spacious consolidated a summary to show the caps of LTV ratios in various conditions.
Jump to: LTV Caps for Private Estates | LTV Caps for Village Houses | LTV Caps for Subsidised Housing | FAQ
Latest Update:
– The Hong Kong Monetary Authority (HKMA) has suspended the interest rate stress testing requirement for property mortgage lending that assumes a 200-basis-point rise in the mortgage rate. (2024-2-28)
– Rental properties that are not used by owners, the maximum loan-to-value ratio will be increased to 60 per cent, from previous 50 per cent. (2024-2-28)
LTV Caps for Private Estates
In July 2023, the government announced that it would further relax the loan-to-value ratio caps for mortgage insurance plans, as follows:
| Property Value（HK$） | LTV caps （first-time buyers） | LTV caps （non-first-time buyers） |
|---|---|---|
| Up to $10M | 90% | 80% |
| Above $10M – $11.25M | 80% – 90% （capped at $9M） | 80% （capped at $9M） |
| Above $11.25M – $15M | 80% | 80% |
| Above $15M – $17.15M | 70% – 80% （capped at $12M） | 70% – 80% （capped at $12M） |
| Above $17.5M – $30M | 70% | 70% |
For First-Time Homebuyers
Under the new regulations, the maximum loan-to-value ratio is subject to the following conditions:
- The applicant must not own any residential property in Hong Kong at the time of application.
- The applicant must be regularly salaried.
- The mortgage payments, when compared to the applicant’s individual or household income, must not exceed 50%.
- Properties valued at HK$ 6 million or below can be newly developed properties (“off-plan”), while properties valued above HK$ 6 million must be existing properties (“completed”).
For Non-First-Time Homebuyers
Under the new regulations, the maximum loan-to-value ratio is subject to the following conditions:
- The applicant must undergo a stress test and pass the requirements.
- Properties valued at HK$ 6 million or below can be newly developed properties (“off-plan”), while properties valued above HK$ 6 million must be existing properties (“completed”).
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LTV Caps for Village Houses
The maximum loan-to-value ratio for village houses is slightly different from other private properties. Please refer to the table below for reference:
| Propert Value（HK$） | LTV caps （first-time buyers） | LTV caps （non-first-time buyers） |
|---|---|---|
| $4M – $10M | 85%* | 80% |
| Above $10M – $11.25M | 80% – 85%* （capped at $9M） | 80% （capped at $9M） |
| Above $11.25M – $15M | 80% | 80% |
| Above $15M – $17.15M | 80% （capped at $12M） | 80% （capped at $12M） |
The difference in the LTV ratio caps between village houses and other private properties is not significant, especially for non-first-time homebuyers.
It is important to note that properties collectively owned as ancestral land by indigenous villagers in the New Territories, as well as village houses with resale restrictions, do not qualify for these loan-to-value ratios.
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LTV Caps for Subsidised Housing
Public housing generally allows for higher loan-to-value ratios compared to private properties due to the government’s guarantee.
For HOS poperties
| LTV Caps (Green-Form Application) | LTV Caps (White-Form Application) | Repayment Period | |
|---|---|---|---|
| 1st-hand | 95% | 90% | 30 Years |
| 2nd-hand （ premium unpaid） | 95% | 90%* | 30 Years |
| 2nd-hand （premium paid） | 80%- 90% | 80%- 90% | 30 Years |
For Public Housings
| LTV Caps | Repayment Period | |
|---|---|---|
| Green Form Subsidised Home Ownership Scheme | 95% | 30 Years |
If you are searching for a property across different neighbourhoods, go to Spacious to discover a wealth of properties listed for sale.
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FAQ
Is a stress test required when using the New Mortgage Insurance Plan proposed by the Financial Secretary Chan Mo-po?
Yes, a stress test is required. Furthermore, as the loan amount increases, the income requirement for applicants becomes higher.
Update: Stress testing on mortgage lending has been scrapped since 28 February, 2024.
How does purchasing a property under a company name affect the loan-to-value ratio?
It will be considered for non-self-use purposes. Regardless of the property price, the maximum loan-to-value ratio is 60%.
