About this calculator
Banks in Hong Kong may lend up to 70% of a property's value on their own balance sheet. Everything above that — up to 90% for homes up to HK$10 million, tapering to a 70% ceiling on homes above HK$17.15 million — exists because the Mortgage Insurance Programme of HKMC Insurance stands behind the top slice. The borrower pays for that protection: a premium charged as a percentage of the whole loan, set by the LTV band you land in and the loan term, from the published rate sheet. It is not small money. A 90% loan over 30 years sits in the top band at 3.55% of the loan — on a HK$7.2 million loan that is HK$255,600, usually folded into the mortgage itself, where it collects interest for decades.
Two levers soften it. The first-time-buyer concession (July 2023) waives the premium on the slice of coverage between 70% and 75% LTV for properties up to HK$15 million: a first-timer at 90% LTV pays only 75% of the standard premium, at 80% pays half, at 75% pays nothing extra at all — the concession is worth HK$63,900 on that HK$7.2 million loan. The second lever is discretionary: HKMC offers risk-based pricing discounts (up to about 25%, for LTVs up to 85%) and loyalty discounts for returning borrowers, both assessed case by case. We model them as a discount you enter only if quoted — a calculator that baked them in would be making promises HKMC does not.
How to use it
- Enter the price — the calculator enforces the MIP maximum LTV for that price band and tells you the cap if you exceed it.
- Set the LTV you want and the loan term; premium tables price the exact published tenors (10/15/20/25/30 years).
- Tick first-time homebuyer if you qualify for the premium concession (properties up to HK$15 million).
- Leave the discount at 0 unless a bank or HKMC has actually quoted you a premium discount.
- Compare the single premium (usually added to the loan) with the annual option in the results and the full rate sheet below.
The formula
The premium percentage applies to the full original loan amount, not just the insured top slice — that is why the same LTV step costs more on a bigger loan. The annual option charges a higher first-year rate and then a flat renewal rate on the original balance each year, so it suits borrowers who expect to sell or refinance down below 70% LTV quickly; the single premium suits those staying put, and a partial refund exists if the loan is fully repaid within the first three years (LTV at or below 90%, no default or claim).
Worked example
An HK$8 million flat at 90% LTV over 30 years: the loan is HK$7.2 million, the band rate is 3.55%, and the standard single premium is HK$255,600. A first-time buyer pays the concession factor of (90−75)/(90−70) = 75% of that — HK$191,700, saving HK$63,900 — or can choose the annual route: HK$89,100 in year one (HK$118,800 before the concession), then a renewal premium of HK$34,020 a year. Scale down to an HK$6 million flat at 80% over 25 years: standard premium HK$72,000, first-timer price HK$36,000 exactly — the concession halves it.
Sources: HKMC Insurance premium rate sheet (floating-rate schedule), as published by HKMCI and reproduced by the Estate Agents Authority; MIP maximum LTVs by price from the July 2023 HKMCI revisions; premium concession for first-time homebuyers (July 2023) — current October 2026. Discretionary risk-based and loyalty discounts are modelled at zero unless the reader enters one. Last updated: October 2026.
Frequently asked questions
Can the premium be added to the loan?
Yes — the single premium is normally financed by adding it to the mortgage, and HKMC permits this without it counting against the LTV cap. Convenient, but not free: HK$191,700 added to a 30-year loan at around 3.5% costs roughly another HK$118,000 in interest across the term. Paying the premium in cash hurts now and wins over any long hold.
What is the maximum price for a 90% loan?
HK$10 million. The MIP caps taper with price: 90% up to $10M, a formula band to $11.25M, 80% to $15M, a formula band to $17.15M, and 70% above that — beyond $17.15 million there is no insured slice and the bank's own cap is the ceiling. These are the July 2023 HKMCI revisions, unchanged since; the February 2024 HKMA changes simplified the banks' underlying LTV to a flat 70% underneath the MIP.
Do I get the premium back if I refinance or sell early?
A partial refund of the single premium is available when the loan is fully repaid within the first three years, provided the LTV was at most 90% and there has been no default or claim event — the refund scale is in HKMC's programme terms. Annual premiums are simply not charged after the loan is repaid, which is why the annual option can be cheaper for a short expected hold despite the higher headline rates.
Why do quotes mention discounts this calculator defaults to zero?
Because the discounts are real but not entitlements. HKMC's rate sheet flags a risk-based pricing discount of up to 25% — the better the borrower and property profile, the better the chance, generally for LTVs up to 85% — and a loyalty discount of up to 20% for borrowers with existing HKMC-insured loans. Banks submit your file and HKMC decides. If you have been quoted one, enter it here and the maths adjusts; if not, budget at the full table rate.
Does the premium differ for fixed-rate or HIBOR loans?
HKMC publishes separate premium schedules by rate type; the tables here are the floating-rate sheet, which covers the great majority of MIP loans. Fixed-rate MIP loans price slightly differently. The structure — bands, concession, refund window — is the same; if you are taking one of the HKMCI fixed-rate products, ask the bank which cell of its sheet applies to you.
What formula does this hkmc mortgage insurance premium calculator (mip) calculator use?
Premium = loan × rate(LTV band, tenor) × concession factor × (1 − discount); concession factor = (LTV − 75) ÷ (LTV − 70) for first-timers, properties ≤ $15M The premium percentage applies to the full original loan amount, not just the insured top slice — that is why the same LTV step costs more on a bigger loan. The annual option charges a higher first-year rate and then a flat renewal rate on the original balance each year, so it suits borrowers who expect to sell or refinance down below 70% LTV quickly; the single premium suits those staying put, and a partial refund exists if the loan is fully repaid within the first three years (LTV at or below 90%, no default or claim). The worked example on this page applies the formula step by step with real numbers, so you can verify the result by hand.