Hong Kong Mortgage Calculator
Enter the loan amount, annual interest rate and tenor to calculate the monthly repayment, and estimate the minimum income required under the HKMA stress test (rate +2%, debt servicing ratio ≤ 50%).
Input Data
Results
At a glance:Hong Kong mortgages use equal monthly instalments: monthly repayment M = P·r·(1+r)^n / ((1+r)^n −1), where P is the loan amount, r is the monthly interest rate (annual rate/12) and n is the total number of months. The HKMA stress test requires that, assuming a 2-percentage-point rate rise, the monthly repayment still does not exceed 50% of the applicant's monthly income (the assessment was suspended in 2023 and reintroduced in 2024; actual requirements follow the latest HKMA and bank rules). This calculator back-calculates the minimum monthly income required. The loan-to-value ratio depends on the property price and whether the buyer is a first-time homebuyer (e.g. up to 90% for properties below HK$10M).
Formula
Monthly rate r = annual rate / 12 / 100
Monthly repayment = loan × r × (1+r)^n / ((1+r)^n −1)
Stressed repayment = recalculated at (rate + 2%)
Minimum income = stressed repayment / 50%
$$M = P\frac{r(1+r)^n}{(1+r)^n-1}$$$$I_{min} = \frac{M_{stress}}{0.5}$$How to Use
- Enter the loan amount, annual interest rate and tenor.
- The calculator outputs the monthly repayment.
- It back-calculates the minimum income from the stressed (+2%) repayment.
Case Studies
First-time buyer mortgage
4M, 3.5%, 30 years.
Monthly repayment ≈ 17,970; stressed (5.5%) ≈ 22,730; minimum monthly income ≈ 45,460.
High LTV case
6M, 3.25%, 30 years.
Monthly repayment ≈ 26,090; stressed (5.25%) ≈ 33,140; minimum monthly income ≈ 66,280.
FAQ
Why add 2% in the stress test?
The HKMA requires banks to assess borrowers' ability to repay if rates rise by 2 percentage points, ensuring the repayment stays within 50% of income and containing credit risk.
How is the loan-to-value ratio set?
It depends on the property price, whether the buyer is a first-time homeowner and proof of income. First-time buyers of properties below HK$10M may borrow up to 90% (with mortgage insurance); the ratio tapers for higher-value properties.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.