Hong Kong homebuying handbook: budget, checks, mortgage and completion
Plan cash costs, verify property information and prepare mortgage and sale documents. Separate general lending limits, mortgage insurance and lender approval with a practical checklist.
Last reviewed: · WeProperty Editorial Team · Editorial policy
Short answer: Confirm the total budget, check the property and financing, and understand the documents before signing. General mortgage limits, insurance eligibility and the lender’s actual approval are separate decisions; an old price-band table cannot establish your loan amount.
Scope: the general mortgage measures concern property purchases and refinancing. Property-secured corporate operating credit, mortgage insurance and subsidised-housing schemes require separate conditions.
1. Prepare the whole cash budget
Allow separately for the down payment, applicable stamp duty, legal/document charges, agreed agency commission, moving, repairs and ongoing expenses. Use dated rules and individual quotations rather than one universal percentage.
The general mortgage measures effective from 16 October 2024 standardised LTV at 70% and DSR at 50%. They do not promise approval. The old general 70%/60%/50% property-price bands should not be used. Higher-LTV mortgage insurance has separate property, loan, income and ownership criteria; first-time status alone does not guarantee 90%. HKMA: mortgage measures effective 16 October 2024.
| Confirm | Use |
|---|---|
| Payments and cash buffer | Mortgage and affordability scenarios |
| Valuation and actual borrowing | Lender assessment and written offer |
| Insurance eligibility and premium | HKMCI criteria and participating lender |
| Charges and obligations | Dated rules, quotations and solicitor review |
2. Check the property and keep records
Record saleable area, use, age, management charges, condition and possession arrangements. Listings and photographs are starting information; verify unresolved matters using documents or appropriate professional help.
Use the due-diligence checklist (Traditional Chinese) to distinguish registered records, actual occupation and legal title review. No single tool guarantees the absence of transaction risk.
3. Prepare financing evidence
Organise identity, income, existing debts and property information, then confirm each lender’s requirements. Initial estimates differ from a formal offer. A valuation shortfall may increase the cash required. Suspension of the regulatory stress test does not remove repayment assessment or the value of your own rate scenarios. HKMA: suspension of regulatory stress testing, February 2024.
Try the mortgage calculator and down-payment calculator before asking about an individual application.
4. Understand the transaction before signing
Ask a solicitor to check the property, parties, deposit, dates, possession and conditions. First-hand and resale arrangements differ. Do not assume free cancellation or a deposit refund if financing is insufficient; resolve important blanks and uncertainties first.
5. Coordinate completion and handover
Confirm funding, balance payments and signing with the lender and solicitor. Record keys, equipment and condition at handover and retain correspondence. Confirm the provider, scope, cost and timing of any inspection or legal referral.
Questions and answers
Do 70% general lending and higher-LTV insurance conflict?
No. Insurance has additional eligibility criteria; the lender and relevant programme still assess the application.
Is a calculator result proof of approval?
No. It uses assumptions and does not verify income, valuation, credit or product eligibility.
Does an email enquiry confirm an appointment?
No. Wait for a reply confirming the provider, service scope, fees and time.
Sources
Revision: reviewed the cited scope, replaced outdated generalisations and removed unsupported experience or outcome promises. Examples and checklists are editorial illustrations; they do not establish individual approval or legal rights.