How much cash do you need to buy at HK$4M?
The HK$4,000,000 price is only the starting point. What actually decides affordability is the cash you must produce between signing the provisional agreement and completion — down payment, ad valorem stamp duty, agency commission, solicitor's fees and valuation costs.
Under current HKMA guidance, owner-occupied residential mortgages are generally capped at 70% LTV; eligible buyers of properties at HK$10M or below can borrow up to 90% through the Mortgage Insurance Programme. Both cases are shown below.
| Item | 70% LTV | 90% LTV (MIP) |
|---|---|---|
| Down payment | HK$1,200,000 | HK$400,000 |
| Ad valorem stamp duty (Scale 2) | HK$100 | HK$100 |
| Agency commission (1%) | HK$40,000 | HK$40,000 |
| Solicitor's fees (approx.) | HK$10,000 | HK$10,000 |
| Valuation, searches, misc. (approx.) | HK$5,000 | HK$5,000 |
| Total cash required | HK$1,255,100 | HK$455,100 |
Monthly payment, stress test and income required
Calculated at 3.5% per annum over 30 years. The stress test adds 2 percentage points per HKMA requirements; debt-servicing ratio is normally capped at 50% (60% under the stressed scenario).
| Item | 70% LTV | 90% LTV (MIP) |
|---|---|---|
| Loan amount | HK$2,800,000 | HK$3,600,000 |
| Monthly payment | HK$12,573 | HK$16,166 |
| Stressed payment (+2%) | HK$15,898 | HK$20,440 |
| Monthly income required (approx.) | HK$26,497 | HK$34,067 |
What does HK$4M actually buy?
HK$4M opens up Tin Shui Wai, smaller Tseung Kwan O units, and older estates in Tsuen Wan and Tai Po — around 300–400 sq ft saleable, typically two bedrooms. This price sits right on the HK$100 stamp-duty threshold: negotiating the agreed price down to HK$4,000,000 or below can change your duty bill dramatically.
These are general market observations. Individual estates, floors, aspects and building ages vary widely — always check registered transactions at the Land Registry for the specific block.
What a 3% negotiation saves in total
Assume an asking price of HK$4,000,000 negotiated to HK$3,880,000 — a reduction of HK$120,000. On the surface you saved HK$120,000. In practice four costs fall at once.
| Saving | Amount |
|---|---|
| Lower agreed price | HK$120,000 |
| Lower ad valorem stamp duty | HK$0 |
| Lower agency commission (1%) | HK$1,200 |
| Lower mortgage interest (70% LTV, 30y, 3.5%) | HK$51,720 |
| Total saving | HK$172,920 |
Frequently asked questions
How much cash do I need to buy at HK$4M?+
About HK$1,255,100 at 70% LTV (HK$1,200,000 down + HK$100 stamp duty + HK$40,000 commission + roughly HK$15,000 legal and sundry costs). At 90% LTV it drops to about HK$455,100, plus the mortgage insurance premium.
Can I get a 90% mortgage on a HK$4M flat?+
Eligible owner-occupier buyers of properties at HK$10M or below can apply for up to 90% LTV through the Mortgage Insurance Programme, subject to income and stress-test requirements and a one-off premium. Final approval rests with the bank and HKMC.
What income do I need to pass the stress test?+
At 3.5% over 30 years, roughly HK$26,497 per month at 70% LTV and HK$34,067 at 90% LTV. Existing loans raise the requirement.
How much can negotiation save me?+
On a 3% reduction: HK$120,000 off the price, HK$0 of stamp duty, HK$1,200 of commission and HK$51,720 of interest over thirty years — about HK$172,920 in total. The achievable reduction depends on the listing, the seller's position and market conditions.