Last verified：2026-09-04｜WeProperty Editorial Team · Editorial and author information
Short answer：A Mortgage Link usually means a deposit-linked mortgage. Depending on the bank, eligible savings may earn a preferential rate linked to the mortgage rate or reduce the balance used for interest calculations; the deposit does not automatically repay principal. Caps, account ownership, withdrawals, default and termination are all governed by the written product terms.
Two common structures
| Structure | How the benefit arises | What to verify |
|---|---|---|
| Preferential savings interest | Eligible savings earn an interest rate linked to the mortgage | Mortgage principal and instalments still follow the facility |
| Net-balance interest | Eligible savings reduce the amount used to calculate interest | Statements, access and detailed terms may differ |
A product cap is not a market-wide promise
HSBC's current product page states that preferential interest applies to savings of up to 50% of the outstanding mortgage balance. Other banks and time-limited offers may use different caps. Compare the lower of your actual deposit and the cap stated in the bank's written offer.
Illustration: the deposit is not a principal repayment
Assume an outstanding mortgage of HK$4,000,000, a 50% eligible cap and HK$500,000 in the linked account. The eligible amount is HK$500,000. If HK$200,000 is withdrawn, the eligible balance would ordinarily fall to HK$300,000. Day counts, rates and crediting rules must be checked on the bank statement; this example explains mechanics only.
Six terms to compare
- Whether the cap falls with outstanding principal.
- Required account holder and number of linked accounts.
- How the deposit and mortgage rates change.
- Withdrawal access, minimum balances and account fees.
- Treatment of arrears, refinancing and early repayment.
- Deposit protection and any additional product risks.
Estimate repayments with the mortgage calculator and review the mortgage FAQ. To compare written bank offers, request a mortgage referral consultation.
Frequently asked questions
Does a Mortgage Link reduce mortgage principal?
Usually not. Some products pay preferential deposit interest and others use a net balance for interest; principal and instalments remain governed by the facility.
Is the eligible deposit always 50% of the mortgage balance?
No. Fifty per cent is a cap shown by some current products, not a market-wide guarantee. Read the written offer and key facts statement.
Can linked funds be withdrawn at any time?
Many products promote liquidity, but a withdrawal reduces the eligible amount. Check minimum balances, account eligibility and the bank's termination rights.
Should all emergency cash go into the linked account?
Do not sacrifice essential liquidity merely to pursue interest. Keep an emergency reserve and compare rates, fees and access needs.
Official and product sources
- HSBC Hong Kong: Deposit-linked Mortgage
- Hang Seng Bank: Mortgage-Link Loan Scheme
- Standard Chartered Hong Kong: Deposit Linked Mortgage
Revision note：Updated against first-party sources available on 4 September 2026; unsupported anecdotes, fixed market figures and absolute claims were removed.
Disclaimer：General information only; not a bank-product recommendation or investment, tax or credit advice. Terms may change.