Preparation before using the mortgage calculator
- Loan amount, term and repayment method.
- Current or assumed annual interest rate, and indicate whether the interest rate is fixed or assumed to be floating.
- Whether mortgage insurance, processing fees or other one-time expenses need to be calculated.
The calculator estimates the monthly payment by entering the principal, interest rate and number of periods. It does not automatically represent bank approval conditions, actual interest rates or the total cost of ownership.
Include ad valorem stamp duty in your purchase budget. Under the rates effective from 26 February 2026, the estimated duty for a residential property priced at HK$8,000,000 is HK$240,000 (3%). The final duty depends on the chargeable consideration and buyer circumstances. Check the latest Inland Revenue Department rates.
Calculation method of monthly mortgage payment
Your monthly mortgage payment depends on the loan amount, annual interest rate and repayment term. If the interest rate or term changes, the monthly payment and total interest will be different, even if the loan amount is the same. You can use the tool to set up different scenarios to see how sensitive your contributions are to changes in interest rates.
| situation | Suggested comparison |
|---|---|
| Basic estimate | Calculate monthly payment based on current assumed interest rate and target term. |
| Interest rates rise | Increase the assumed interest rate and check the monthly cash flow impact. |
| shorten the term | Compare the monthly payment increase and the total interest change. |
| Additional cost | Budget separately for the down payment, fees, insurance and maintenance. |
H mortgage, P mortgage and fixed rate mortgage
Learn from the bank about the applicable interest rates, interest rate adjustment mechanism, penalty interest period, early repayment terms and related fees. The mortgage information of the Hong Kong Monetary Authority can be used for general reference, but individual loan conditions should be based on the bank's official documents.
FAQ
Does this estimate mean the bank will approve my mortgage?
The estimate does not guarantee that a bank will approve the same loan amount, interest rate or term. The bank will assess your application under its current requirements.
Can a small interest rate change affect my monthly payment?
The effect depends on the loan amount and remaining term. Use the calculator to compare different interest rate scenarios and then confirm based on bank information.
Is the monthly payment equal to the total monthly expenditure on home ownership?
No. Management fees, rates, maintenance, insurance and other household expenses also need to be considered on an individual basis.