Home Mortgage Calculator
Plan a home mortgage: enter the loan amount, annual rate and term to get the monthly instalment, total repayment and total interest.
Input Data
Results
At a glance:A home mortgage is a housing loan secured by the property you intend to buy, repaid by equal instalments (amortising) with a fixed monthly payment. Core formula: monthly payment = loan × monthly rate × (1 + monthly rate)^periods ÷ [(1 + monthly rate)^periods − 1], where monthly rate = annual rate ÷ 12 and periods = years × 12. Loan amount = property price − down payment; under the current Hong Kong Monetary Authority (HKMA) measures, a standard residential mortgage is capped at 70% loan-to-value (LTV) (i.e. a 30% down payment). The interest share is high and the principal share low early, and vice versa later; with a high price and long term, total interest is often substantial.
Formula
Monthly rate r = annual rate% ÷ 100 ÷ 12; total periods n = years × 12.
Monthly payment = loan amount × r × (1+r)^n ÷ ((1+r)^n − 1).
Total repayment = monthly payment × n; total interest = total repayment − loan.
$$\text{EMI} = P \times \dfrac{r(1+r)^{n}}{(1+r)^{n} - 1}, \quad r = \dfrac{\text{annualRate}}{12}, \quad n = \text{years} \times 12$$$$\text{LoanAmount} = \text{PropertyValue} \times \text{LTV} \le \text{PropertyValue} \times 70\%$$$$\text{TotalInterest} = \text{EMI} \times n - P$$How to Use
- Enter the mortgage loan amount needed (property price less down payment).
- Enter the mortgage annual rate and repayment term.
- View the monthly instalment, total repayment and total interest to assess the homebuying burden.
FAQ
What is the maximum mortgage LTV in Hong Kong, and how much down payment do I need?
Under the current HKMA measures, a standard self-used residential property priced at HK$30 million or below can have up to 70% LTV, i.e. a 30% down payment. A higher LTV requires the Mortgage Insurance Programme. Loan amount = property price − down payment; the higher the price, the more the LTV cap and maximum term may be restricted. Once you know the loan amount, use this tool to estimate the instalment and confirm the debt-servicing ratio meets the bank and HKMA requirements.
What homebuying costs are there besides the monthly instalment?
Apart from the monthly payment, buying a home involves one-off costs such as the down payment, ad valorem stamp duty (AVD), legal fees, agent commission, mortgage insurance (for higher LTV) and renovation, plus recurring costs like management fees, rates and government rent. This tool only calculates the mortgage instalment, so budget these other expenses separately.
Are Hong Kong mortgages floating or fixed rate? What is the difference between H-Plan and P-Plan?
Most Hong Kong mortgages are floating: the 'H-Plan' is linked to HIBOR and usually has a 'cap rate' (capped at Prime minus a margin), while the 'P-Plan' is linked to the bank's Prime rate, usually Prime minus a certain percentage. Both rates move with the market. This calculator uses a fixed rate to estimate repayment at a given level; we suggest testing with your actual contract rate or the H-Plan cap and keeping a buffer for a rising-rate cycle.
How can I reduce the total interest?
You can lower total interest by increasing the down payment to reduce the loan, shortening the term, or making partial early repayments when affordable. Note most Hong Kong mortgages float, so keep a buffer for rate rises; comparing banks' actual rates and cash rebates also helps lower overall cost.
What are the formulas and LTV cap in this mortgage calculator based on?
This calculator uses the standard equal-instalment (annuity) formula for the monthly payment, total repayment and total interest; the LTV cap (max 70%), debt-servicing ratio and mortgage insurance follow the HKMA residential mortgage measures. Results are for estimation and planning only; actual approval rates, LTV and repayment follow the bank and the latest HKMA announcements.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.