Property & Real Estate

HKMC Mortgage Insurance Premium Calculator

Estimate mortgage insurance premiums, the 35% discount and the change in monthly repayments when the premium is added to the loan for high-LTV mortgages.

Mortgage details

Property price

HK$ 6,000,000

Loan-to-value (LTV)

90%

Loan term

30 years

Premium discount

65%

Mortgage interest rate

4.1%

Premium added to loan

• Private-home mortgages above the current basic 70% LTV cap usually require mortgage insurance.

• The premium can be paid in one lump sum or added to the loan and repaid in instalments.

• Adding it to the loan increases total interest expense.

Discounted mortgage insurance premium

HK$157,950

Loan amountHK$5,400,000 · Standard premiumHK$243,000 · Premium rate4.50%

Loan amount

HK$5,400,000

Standard premium

HK$243,000

Monthly repayment increase

HK$766

Total interest on premium

HK$117,632

Premium rate

4.50%

Discounted premium

HK$157,950

Added to loan

HK$157,950

Principal increased by

Suggestion:Premium is about HK$157,950; if added to the loan, monthly repayment rises by about HK$766 and total interest expense will increase.

Understanding HKMC Mortgage Insurance

For private homes in Hong Kong, a loan above the HKMA's current basic 70% LTV cap will generally require mortgage insurance. Mortgage insurance protects the lender, not the borrower, and allows eligible buyers to apply for a higher-LTV mortgage. The applicable maximum LTV, property-price limit, premium and income requirements are subject to the HKMC criteria in force at the time.

Mortgage insurance premiums vary according to the loan-to-value ratio, repayment term and premium discount. Generally, the higher the loan-to-value ratio and the longer the term, the higher the premium rate. Common market offers include premium discounts (for example, 35% off) or adding the premium to the loan amount. If the premium is added to the loan, immediate cash outlay is reduced, but monthly payments and total interest expense will increase.

HK FinBox's HKMC mortgage insurance premium calculator lets you enter the property price, loan-to-value ratio, repayment term, premium discount rate, interest rate and whether the premium is added to the loan, then automatically estimates the standard premium, discounted premium and impact on monthly payments.

If funds allow, it is best to pay the premium in a lump sum to avoid extra interest. If you add it to the loan, include the increased monthly payment in your stress-test assessment. Also, different banks may offer different premium discounts or rebates, so compare terms from several banks when applying for a mortgage and confirm the final premium with the loan officer.

References

1Mortgage Insurance Programme(The Hong Kong Mortgage Corporation Limited)

Rules and links last reviewed: 26 July 2026 · The sources above are for reference only; please refer to the latest official announcements from the relevant organisations.

FAQs

What is HKMC mortgage insurance?

HKMC mortgage insurance protects the lender against part of the loss if a borrower defaults; it does not insure the borrower's life or repayment ability.

When is mortgage insurance required?

A private-home mortgage above the HKMA's current basic 70% LTV cap will generally need to be made under the Mortgage Insurance Programme. Eligibility and maximum LTV remain subject to the lender's and HKMC's approval.

Can mortgage insurance premiums be discounted?

Yes. Discounts such as 35% off are common in the market. The calculator works out the actual premium based on the discount rate you enter.

Should the premium be paid in a lump sum or added to the loan?

A lump-sum payment avoids extra interest. Adding it to the loan reduces immediate cash outlay but increases total interest. It depends on your financial situation.

Is the premium rate in the calculator accurate?

The calculator uses a simplified estimate. Actual premium rates are subject to the latest announcements from HKMC or banks. Confirm with the lender before applying.

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