Under the latest regulation on loan-to-value (LTV) limit, the highest LTV allowed is 60% and properties should be valued at or under HKD 7 million. If you want to take out a mortgage for a property that costs over this limit, there are two methods to do so:
- Apply through a second mortgage, which is generally provided by financial institutions, property developers, or property agencies.
- Apply for the Mortgage Insurance Programme (MIP) offered by Hong Kong Mortgage Corporation (HKMC). Under the new prudential measures of 2015, 90% of LTV is only available for applicants that are genuine first-time buyers for self-use who is regular salaried employee without any property asset under his or her name, while the debt-to-income ratio is at or below 45%. Otherwise, the maximum LTV is only 80%.