Hong Kong Living Guide
Hong Kong Mortgage Refinancing and Early Repayment Guide
Do not compare only the new mortgage rate or cash rebate. Get a dated settlement amount from your current bank, then compare total interest, fees and any change in loan term.
Get these details from your current bank
- Outstanding principal and the settlement amount for a specified date.
- Lock-in end date, early repayment charge and other applicable fees.
- Current rate, monthly instalment, remaining term and rate adjustment terms.
- Legal, valuation, administration and discharge steps for a refinance.
Do not treat an online principal estimate as the settlement amount. Use the bank's dated written figure as the comparison baseline.
Compare all costs in one table
| Item | What to check |
|---|---|
| Interest | New rate, calculation method, post-promotion rate and loan term |
| One-off fees | Legal, valuation, application and other listed bank charges |
| Cash rebate | Actual amount, payment date, conditions and clawback terms |
| Settlement of current loan | Penalty, early repayment charge and mortgage discharge costs |
| Change in term | Whether the term restarts; a lower instalment does not always mean less total interest |
Compare early repayment savings with fees
Compare remaining payments and interest under the current loan with interest avoided after repayment, then deduct penalties and other charges. Request a formal settlement quote for the expected date because interest may vary by date.
The HKMA advises consumers to understand early repayment arrangements and related costs. Loan terms vary, so check your mortgage documents and obtain written confirmation from the bank.
A practical comparison checklist
- Record the current loan's remaining payments, term, rate and settlement charges.
- Record the new instalment, full term, post-promotion rate and one-off costs.
- Include only the rebate you can actually keep after checking its conditions.
- Compare total cost over your expected holding period, not only the first instalment.
- Ask the bank to confirm unclear terms in writing.
Checked on 19 October 2026. This guide is general information, not mortgage or investment advice.
Frequently asked questions
Does a lower refinance rate always save money
No. Penalties, legal and valuation costs, rebate conditions and a longer term affect total cost.
Can I count the full cash rebate as savings
Check payment conditions, timing and clawback terms before including it.
Can I estimate early repayment using principal only
Principal may not include interest to the settlement date or other fees. Ask the bank for a dated figure.
Does a lower monthly payment mean less total interest
Not necessarily. Extending the term can reduce monthly payments while increasing total interest.