Direct answer:Mortgage Insurance Programme premiums are calculated as a percentage of the applicable loan basis. The property value, insurance coverage / LTV, term, fixed or floating rate and payment option affect the schedule. An LTV alone does not determine one universal premium rate. Ask the bank to identify the applicable official schedule, table, column and any discount.
Select the applicable schedule before calculating
The official programme page links eligibility documents and premium tables. Check the sale-agreement date and property type, as well as value, coverage, term and payment column. Keep the effective date and footnotes; a document date does not establish eligibility for every application.
Compare payment arrangements
- Single premium paid in cash: show the confirmed amount separately from your purchase deposit.
- Financed premium: check whether financing is available, the additional principal and the repayment and total-cost difference.
- Annual premiums: check applicability and how first-year and renewal amounts are determined; do not repeat a single-premium rate each year.
Arithmetic example, not a quoted market rate
A hypothetical calculation basis of HK$4,000,000 multiplied by an arbitrarily assumed 2% gives HK$80,000. The 2% demonstrates multiplication only. It is not a rate for any applicant, LTV or term. Confirm the actual basis, schedule and discount with the bank.
From premium to the whole budget
Compare premium cash, repayments, other costs and the expected repayment date together. Use the mortgage repayment calculator with a confirmed principal and rate, and the affordability tool for the budget. Neither tool assesses mortgage-insurance approval.
Common questions
Does every 80% mortgage have the same premium?
No. Check the applicable eligibility document, coverage, term and payment option, not just the LTV.
Can the hypothetical 2% be used for an application?
No. It is an arithmetic assumption. Use the applicable official schedule and the bank’s written confirmation.
Sources and method
- HKMC: current Mortgage Insurance Programme
- Premium schedule linked from the programme page (Chinese; effective 16 October 2024)
This replaces outdated translated examples and personal claims with the current page’s calculation scope. General education only; applicable rules, the actual contract and professional advice govern individual decisions.
Who does mortgage insurance protect, and what should the quote include?
MIP covers the insured risk of the lender. It does not guarantee the borrower’s repayments or approval of a high-LTV loan. Bank and HKMC Insurance eligibility conditions still apply.
- Record the sale-agreement date, price, LTV, loan and term, then check the applicable eligibility rules.
- Use the effective premium schedule on the official HKMC MIP page and obtain a written bank quote including any discount.
- Compare single-premium, annual-premium and financed-premium arrangements separately, including their effect on principal, repayments and interest.
A policy effective date is not a personal live quotation. Check restrictions and refund arrangements for refinancing, letting or early repayment separately.
This section checked: 2026-10-05