Mortgage Insurance Programme Hong Kong: MIP Premium Tables and How to Get 90% LTV
Mortgage Insurance Programme Hong Kong: MIP Premium Tables and How to Get 90% LTV
The HKMA caps standard commercial bank mortgage lending at 70% LTV. For a HK$6,000,000 property, that means you need HK$1,800,000 in cash just for the down payment — before stamp duty, legal fees, or any other cost. Most first-time buyers in Hong Kong don't have that. The Mortgage Insurance Programme (MIP) exists to bridge the gap: it lets eligible first-time buyers access up to 90% LTV by having the insurer guarantee the excess risk above the standard 70% bank cap.
This guide explains exactly how MIP works, who qualifies for which LTV tier, what the premiums cost, and the key restrictions attached to properties bought under high-ratio mortgages.
Who Administers MIP
The MIP is administered by two principal insurers:
- HKMC Insurance Limited (HKMCI) — the primary government-backed insurer, a subsidiary of the Hong Kong Mortgage Corporation
- QBE Hong Kong — a private-sector participating insurer
In practice, most MIP transactions flow through HKMCI. When you apply for MIP coverage through your bank, the bank arranges the insurance on your behalf. You don't approach HKMCI directly.
LTV Tiers and Eligibility Under Current MIP Rules
The maximum LTV and loan amount you can access through MIP depends on the property's assessed value and your personal profile:
| Property Valuation (HKD) | Maximum LTV Under MIP | Key Eligibility Conditions |
|---|---|---|
| Up to HK$10,000,000 | Up to 90% | First-time buyer; regular salaried employee; DSR ≤ 50% |
| HK$10,000,001 to HK$11,250,000 | Up to 90% (loan capped at HK$9,000,000) | Same as above |
| HK$11,250,001 to HK$15,000,000 | Up to 80% | Self-employed and irregular income earners also eligible |
| HK$15,000,001 to HK$17,150,000 | 70% to 80% (loan capped at HK$12,000,000) | Standard high-ratio eligibility rules apply |
| Above HK$17,150,000 | No MIP coverage (standard 70% cap applies) | Standard HKMA guidelines only |
The 90% LTV tier — the most relevant for mass-market first-time buyers — requires:
- You are purchasing your first Hong Kong residential property
- You are a regular salaried employee (a fixed monthly salary, not commission-only or self-employed)
- Your total monthly debt obligations (including the new mortgage) do not exceed 50% of your gross monthly income
Self-employed buyers and those with irregular income are eligible for the 80% LTV tier (properties up to HK$15,000,000) but cannot access 90%.
MIP Premium Tables: What It Costs
The premium is calculated as a percentage of the original mortgage principal (not the property value). You can pay it in two ways:
Single Upfront Premium: Paid in one lump sum at drawdown, typically capitalized directly into the mortgage loan (i.e., the bank lends you the premium amount as part of your mortgage principal). This increases your effective loan balance but avoids an additional upfront cash outlay.
Annual Premium: Paid in yearly installments over the mortgage term. This preserves more cash upfront but results in higher total cost over time in most scenarios.
The single premium rates for floating-rate mortgages on properties up to HK$15,000,000 are:
| Repayment Tenor | LTV 70%–80% | LTV 70%–85% | LTV 70%–90% |
|---|---|---|---|
| 10 years | — | — | — |
| 15 years | lower | mid | higher |
| 20 years | lower | mid | higher |
| 25 years | lower | mid | higher |
| 30 years | ~1.70% | ~2.15% | ~2.50% |
The exact rates are published by HKMCI and updated periodically. For a 30-year loan at 90% LTV, the single premium rate runs approximately 2.50% of the base loan amount. On a HK$5,000,000 property with a 90% base loan of HK$4,500,000, the single premium is approximately HK$112,500 — which, when capitalized into the mortgage, brings your total loan balance to roughly HK$4,612,500.
The 15% Refund Option
If you repay the loan or remortgage such that your outstanding LTV drops below 70% within three years of drawdown, HKMCI offers a 15% refund of the single premium paid. On a HK$112,500 single premium, the refund would be approximately HK$16,875. This is worth factoring in if you anticipate significant capital repayment in the early years.
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The Owner-Occupancy Requirement
This is the rule that catches the most buyers off guard. MIP coverage strictly requires that the mortgaged property serve as the primary residence of the borrower or their immediate family. You cannot rent out an MIP-financed property under normal circumstances.
HKMCI conducts regular audits and can require certified utility bills as proof of occupancy. Making a false declaration of owner-occupancy is a criminal offence under the Theft Ordinance, carrying risk of immediate loan recall, financial penalties, and prosecution.
The MIP Rental Exemption Scheme
On August 8, 2024, the government introduced a conditional rental exemption mechanism for MIP-financed properties. Under specific, verifiable circumstances, homeowners may apply to lease out their property with HKMCI's approval.
The three qualifying triggers are:
- Family expansion: The homeowner's family expects a newborn child or legally adopts a child.
- Financial hardship: The homeowner suffers sudden unemployment or a certified significant drop in household income.
- Special relocation needs: Other documented special circumstances, provided the homeowner has resided in the property for at least 12 continuous months prior to the application.
To obtain an exemption, you must:
- Apply in writing to both the lending bank and HKMCI
- Sign a statutory undertaking
- Agree not to acquire any additional residential property in Hong Kong while the exemption remains active
The exemption is not automatic and not guaranteed. It requires affirmative approval from both the bank and the insurer.
MIP vs. No MIP: The Real Financial Comparison
Consider a first-time buyer targeting a HK$5,000,000 flat. Two financing scenarios:
Without MIP (standard 70% LTV):
- Cash down payment: HK$1,500,000 (30%)
- Loan: HK$3,500,000
- Monthly payment at 2.40% over 30 years: ~HK$13,650
- MIP premium: nil
With MIP (90% LTV, single premium capitalized):
- Cash down payment: HK$500,000 (10%)
- Base loan: HK$4,500,000
- MIP single premium capitalized (~2.50%): ~HK$112,500
- Total loan: ~HK$4,612,500
- Monthly payment at 2.40% over 30 years: ~HK$18,000
- MIP premium: HK$112,500 (spread over 30 years in the loan balance)
The trade-off is clear: MIP costs you approximately HK$4,350 more per month in mortgage repayment compared to a standard 70% LTV loan, and you pay the HK$112,500 premium as part of your loan. But you're deploying HK$1,000,000 less in cash upfront. For most first-time buyers who simply don't have HK$1,500,000 sitting in savings, MIP is the only viable path to private market homeownership.
Applying for MIP Through Your Bank
You don't apply to HKMCI directly. When you submit your mortgage application to a participating bank, you indicate that you're seeking MIP coverage. The bank processes the insurance application on your behalf. Participating lenders include all major commercial banks operating in Hong Kong — HSBC, BOCHK, Hang Seng, Standard Chartered, Citibank, and others.
The bank will confirm MIP eligibility during its credit assessment, verify your salaried status and income, and advise on the specific premium amount and whether capitalization is available.
The Hong Kong First-Time Home Buyer Guide includes the full MIP premium schedule, an LTV eligibility checklist, a worked example comparing the 70% and 90% LTV scenarios at your target purchase price, and a step-by-step guide through the AIP and mortgage application process.
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