High-LTV Mortgage Calculator
From home price, down-payment ratio and annual rate, compute a high-LTV (low down-payment) mortgage's monthly principal & interest, mortgage insurance premium (upfront + monthly) and total payment; compared with the US FHA scheme.
Input Data
Results
At a glance:A high-LTV mortgage has a low down payment and high loan-to-value; the bank's risk is higher, so mortgage insurance is usually required. The US FHA loan allows down payments as low as 3.5% but charges a Mortgage Insurance Premium (MIP) — an upfront premium (can be rolled into the loan) plus an annual premium (paid monthly). Hong Kong's Mortgage Insurance Programme (HKMC) is the same idea: with under 30% down, buyers can insure through banks to lift the LTV to 80%/90% or more, paying upfront and/or monthly premiums. This calculator rolls the upfront premium into the loan for monthly P&I, then adds the monthly premium, giving the true 'with-insurance' monthly payment and the LTV, so you see the full low-down-payment cost before buying.
Formula
Base loan = price × (1 − down-payment ratio).
Upfront premium = base loan × upfront premium rate.
Financed loan = base loan + upfront premium.
Monthly P&I = PMT(financed loan, monthly rate, months).
Monthly premium = financed loan × annual premium rate ÷ 12.
Total monthly = P&I + monthly premium; LTV = base loan ÷ price.
$$L_{base} = P\times(1-d),\quad U = L_{base}\times u,\quad L = L_{base}+U$$$$M = \dfrac{L\cdot i}{1-(1+i)^{-n}} + \dfrac{L\cdot p}{12}$$How to Use
- Enter home price and down-payment ratio (lower = higher LTV).
- Enter the mortgage annual rate and term.
- Adjust the upfront and annual premium rates per the insurer.
- View monthly P&I, monthly premium, total, upfront premium and LTV.
Price HK$6M, rate 3.5%, 30y, upfront 1.75%, annual 0.55%: payments by down payment
| Down % | Financed loan (HK$) | Monthly P&I (HK$) | Monthly premium (HK$) | Total monthly (HK$) |
|---|---|---|---|---|
| 10% | 5,494,500.00 | 24,672.76 | 2,518.31 | 27,191.07 |
| 15% | 5,189,250.00 | 23,302.05 | 2,378.41 | 25,680.46 |
| 20% | 4,884,000.00 | 21,931.34 | 2,238.50 | 24,169.84 |
10% → 20% down cuts total monthly from ~27,191 to ~24,170; at 20% you often avoid the premium — more down saves both premium and interest.
Case Studies
Case 1: A 10% down-payment buyer
Mr Cheung eyes a HK$6M flat with only 10% (HK$600k) down, needing a 90% insured mortgage.
Base loan HK$5.4M; upfront 1.75% = HK$94,500 rolled in → HK$5,494,500; at 3.5%, 30y, monthly P&I ≈ HK$24,673, monthly premium ≈ HK$2,518, total ≈ HK$27,191.
He must note: the with-insurance payment exceeds the surface interest, and rolling the upfront premium in raises total interest — confirm affordability and the stress test.
Case 2: More down saves premium
Miss Lee also eyes a HK$6M flat, with 20% (HK$1.2M) saved.
Loan HK$4.8M (no premium); at 3.5%, 30y monthly P&I ≈ HK$21,553.
Versus 10% down, she pays over HK$5,000 less a month and saves nearly HK$100k upfront premium — saving more down is the most direct way to cut long-term cost.
FAQ
What is Hong Kong's Mortgage Insurance Programme?
Run by the Hong Kong Mortgage Corporation (HKMC), it lets buyers with under 30% down apply for insurance via banks to raise the LTV to 80%, 90% or higher. The bank's risk is covered by insurance; the buyer pays mortgage insurance premiums. The applicable price cap and premium rates are reviewed by HKMC from time to time — refer to the official figures.
Upfront vs monthly premium?
The upfront premium is a one-off (paid in cash or rolled into the loan to amortise); the monthly/annual premium is paid continuously on the loan for a period. This calculator rolls the upfront premium into the loan for the monthly P&I and adds the monthly premium, so you can compare the full cost across down payments.
Is a lower down payment always better?
A low down payment lowers the entry barrier, but the cost is a larger loan, more interest and extra mortgage insurance — a higher total cost long term, plus stricter repayment and stress tests. Balance the timing of entry against the long-term cost.
Is the mortgage premium refundable?
Some plans refund part of the upfront premium on early full redemption or refinancing, by unused term, subject to the policy and insurer. Ask the bank or HKMC about the refund arrangement before applying.
Do high-LTV mortgages need a stress test?
Yes. The HKMA requires mortgage applicants to pass the debt-servicing ratio and interest-rate stress test; high-LTV loans are larger, so the servicing requirement is higher and banks review more strictly. Actual approval follows the bank and HKMA's latest guidance.
Related Tools
References
This calculator's content is reviewed by our Licensed Mortgage Referral & Wealth Advisory team. Results are for reference only; please refer to the relevant authorities for the official figures.