Applying for a mortgage loan is mainly divided into two categories: The first type is based on income, and the second type involves worth–based lending.

Based on income

The government has eased its mortgage restriction policy in 2019, allowing first-time homebuyers to borrow up to 90 percent of the value of a property worth HK$8 million or less, and 80 per cent for homes worth between HK$8 million and HK$10 million.

However, it should be noted that this only applies to mortgagors who have not borrowed or guaranteed other outstanding mortgages in Hong Kong at the time of application or those who have not acted as guarantors to any mortgage borrowers. If there is any, the mortgage loan amount will have to be reduced by another 10 per cent.

Based on net-worth lending

An applicant can consider applying for net-worth based lending if he or she has no income or is unable to provide income proof. The loan that is being sought or applied for will be capped at 40 percent of the property’s value on condition that he or she has no other mortgage, or doesn’t act as a guarantor to other mortgages at the time of application.

Otherwise, the mortgage loan amount will be reduced by 10 per cent to 30 per cent.