How the monthly repayment is worked out
Hong Kong mortgages are normally repaid in equal monthly instalments. Each instalment pays that month's interest first; the rest reduces the loan. Early on most of the payment is interest; towards the end most of it is principal.
- Monthly interest rate r = annual rate ÷ 12 (3.5% a year → 0.2917% a month).
- Number of payments n = years × 12.
- Monthly payment = Loan × r ÷ (1 − (1 + r)−n).
- Total interest = monthly payment × n − loan.
This is the plain arithmetic of a fixed-rate loan. Real HIBOR- or Prime-based mortgages change with interest rates, so treat the result as an estimate.
Worked example
A flat at $8,000,000 with a 70% mortgage: loan $5,600,000, 3.5% a year, 30 years (360 payments).
- Monthly payment: $25,146.50
- Total interest over 30 years: $3,452,740.91; total repaid $9,052,740.91
- Year 1: $194,286.86 interest and $107,471.17 principal; balance after one year $5,492,528.83
- Same loan over 25 years: $28,034.92 a month, total interest $2,810,475.98 – higher payments, much less interest.
HKMA mortgage rules (checked on hkma.gov.hk)
The Hong Kong Monetary Authority sets supervisory limits that banks apply to property mortgage loans. Since 16 October 2024:
- Maximum loan-to-value (LTV) ratio: 70% for all residential and non-residential properties, whatever the property's value and whether or not it is for self-use.
- Debt servicing ratio (DSR) limit: 50% – your total monthly debt repayments compared with your monthly income.
- The 10-percentage-point cut for applicants who already have another mortgage was lifted.
- Maximum tenor: 30 years for property mortgage loans (15 years for car park mortgage loans).
- The interest rate stress test (which assumed a 200-basis-point rise in the mortgage rate) has been suspended since 28 February 2024. The optional "what if" box above is only a personal check.
Higher LTV ratios can be available through the HKMC's Mortgage Insurance Programme; its terms are not covered here. A bank decides the final loan amount based on your full circumstances.
What this calculator does not cover
- Floating-rate changes (HIBOR or Prime), interest rate caps and cash rebates.
- Mortgage insurance premiums, legal fees, valuation fees and other costs.
- Your other debts, which banks include when they work out your DSR.
Frequently asked questions
What is the maximum mortgage in Hong Kong?
Under the HKMA's measures since 16 October 2024, the maximum loan-to-value ratio is 70% for all properties, so for an $8,000,000 flat the bank loan can be up to $5,600,000 before any mortgage insurance.
Is there still a mortgage stress test?
The HKMA suspended the stress test requirement (a 200-basis-point rate rise) on 28 February 2024. The debt servicing ratio limit of 50% still applies.
What is the longest mortgage term?
The HKMA sets the maximum tenor for property mortgage loans at 30 years.
Why is so much of my early payment interest?
Interest is charged on the outstanding balance, which is largest at the start. As the balance falls, more of each fixed payment goes to principal.
Are the results exact?
They are exact for a fixed-rate loan with monthly interest at the rate you enter. Your bank's figures can differ because of floating rates, rounding and fees.
Official sources
Every figure on this page was checked against these pages on 21 Oct 2026.