Hong Kong Mortgages: HKMA DSR 50%, Mortgage Insurance Programme (MIP), and Hibor vs Prime Rates

A complete guide to HK residential property financing: Hong Kong Monetary Authority (HKMA) debt servicing ratios, Mortgage Insurance Programme (MIP) up to 90% LTV, and H-plan vs P-plan mortgages.

Updated 2026-09-06 · Reviewed against Hong Kong Monetary Authority (HKMA) and HKMC Insurance Limited regulatory circulars. · Fact-Checked Lending Norms

HKMA Debt Servicing Ratio (DSR) Limits

The Hong Kong Monetary Authority (HKMA) sets a maximum baseline Debt Servicing Ratio (DSR) of 50% for standard residential properties occupied by the owner. If the borrower already holds an existing mortgage or derives primary income outside Hong Kong, the maximum DSR ceiling drops to 40%.

HKMC Mortgage Insurance Programme (MIP)

Under the HKMC Insurance Limited framework, qualified first-time buyers can access high-LTV financing up to 90% LTV on completed residential properties valued up to HK$10 million, and 80% LTV for properties valued up to HK$15 million, bypassing the standard 70% bank loan cap by paying a one-off insurance premium.

H-Plan (HIBOR) vs P-Plan (Prime Rate)

Over 95% of Hong Kong mortgages are structured as H-Plans pegged to the 1-month Hong Kong Interbank Offered Rate (HIBOR + spread), protected by a contractual Prime Rate cap (P minus spread). Borrowers benefit from lower floating HIBOR costs while retaining a guaranteed upper ceiling.

Stamp Duty (AVD) and Legal Costs

Buyers pay Ad Valorem Stamp Duty (AVD) under Scale 2 progressive rates for HK permanent residents purchasing their first home. Legal agency fees and estate agency commissions typically add 1% to 1.5% of the transaction value.

ℹ️ Statutory Notice & Methodology

Global Finance Calculator provides mathematical estimates for education, planning, and comparison — not regulated financial advice or credit pre-approval. Tax legislation, statutory central bank buffers, and underwriting criteria change. Confirm critical figures with official regulatory publications or a licensed mortgage broker before signing contracts.