Minimum down payment under LTV caps.
Minimum down payment
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Maximum loan
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Stamp duty
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Deposit plus duty
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Your breakdown
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The two numbers that decide your deposit
Buying a flat in Hong Kong, the cash you need on day one is driven by two separate rules that have nothing to do with each other. The first is the loan-to-value cap set by the Hong Kong Monetary Authority, which limits how much a bank may lend against the property and therefore fixes your minimum down payment. The second is Ad Valorem Duty, the stamp duty the government charges on the purchase. This tool runs both and adds them, because the real question is not the loan or the duty alone, it is the total upfront cash you have to find.
One thing worth saying plainly: there is no capital gains tax in Hong Kong, so when you eventually sell, any rise in the flat's value is yours and is not taxed as a gain. There is also no annual property wealth tax of the kind some countries levy. The upfront duty modelled here is essentially the one big transaction tax on the purchase itself.
How HKMA loan-to-value caps work
The HKMA tightened and then, through 2024, eased the financing rules. The caps step down as the property value rises, and they also depend on whether the place is for your own use or an additional property. After the easing many self-use homes qualify for up to 70 percent financing, with the Mortgage Insurance Programme allowing higher ratios for some buyers who pay an insurance premium. The dropdown lets you pick the cap that matches your situation. Because these bands shift with policy, treat the percentages here as the ones modelled and confirm your eligibility with the HKMA and your lender before committing.
An $8 million flat at a 70 percent cap
Run the default: a property valued at $8 million bought for own use at a 70 percent loan-to-value cap. The bank can advance 70 percent, which is $5.6 million, leaving a $2.4 million down payment. On top of that sits Ad Valorem Duty. An $8 million price falls in the band the tool prices at 3 percent, giving duty of $240,000. Add the two and the cash you actually need to bring is $2.64 million, not the $2.4 million deposit alone.
The cliff-edge trap near each duty band
This is the edge case most buyers miss. The tool applies one flat rate to the whole price within each band, which is clean and close enough for planning. The Inland Revenue Department's real Ad Valorem table adds marginal-relief transition zones just above each band boundary, so a price that sits a little over a threshold is not taxed at the full higher rate on the whole sum. Near a boundary, say a price just over $9 million, the tool can overstate the duty compared with the official schedule. If your price is close to a cliff, price it against the IRD table rather than relying on the flat-band figure here.
Also keep in mind the abolition that reshaped this market: the residential demand-side duties, Buyer's Stamp Duty, the New Residential Stamp Duty and the Special Stamp Duty, were all abolished on 28 February 2024. Since then, ordinary residential purchases face Ad Valorem Duty at Scale 2 only. This tool reflects that single-duty world, but stamp duty policy moves with each Budget, so confirm the current bands with the IRD.
Can I borrow more than the cap with mortgage insurance?
Often yes. The Mortgage Insurance Programme lets qualifying buyers take a higher loan-to-value ratio in exchange for an insurance premium, which is why the dropdown offers a 90 percent option. Eligibility depends on the property value, your income and whether it is for self-use, so the higher ratios are not automatic.
Does the down payment include legal and agency fees?
No. This calculator covers the deposit and the stamp duty only. Solicitor's fees, the estate agent's commission, usually around 1 percent, and a mortgage valuation are extra. Budget a further cushion on top of the cash figure shown here.