1. The six cost categories
Down-payment + AVD + legal fees + agent commission + mortgage-related fees (valuation, insurance) + misc (management-fee deposit, utility deposits, renovations). Six categories, none negotiable except the down-payment and the price itself.
2. Down-payment (10–40% of price)
Standard mortgage: first-time buyers can borrow up to 70% (properties HK$10M and below), i.e. 30% down.
Mortgage Insurance Programme (MIP): raises LTV to a maximum of 90% (properties HK$10M and below), at a premium of 1.15%–5% of the loan (payable up-front or added into the loan).
Above HK$10M: LTV caps step down; consult HKMA's latest guidelines.
3. Ad Valorem Stamp Duty
First-time buyers pay a reduced scale (HK$100 up to HK$4M). See our full stamp-duty guide for detailed rate tables.
4. Legal fees (buyer's side)
Your solicitor handles: title investigation, mortgage documentation, stamp-duty payment, conveyancing.
Market rate: HK$8,000 – HK$18,000 depending on price and complexity. Older properties or complex title chains cost more.
Plus: Land Registry fees and small admin charges around HK$450 – HK$1,000.
5. Agent commission
Standard: 1% from each side (buyer and seller). Repeat clients or larger transactions can negotiate to 0.5–0.75%.
On HK$10M: HK$100,000 commission (before any rebate arrangement).
6. Miscellaneous
Mortgage application / valuation: usually free; some banks charge HK$1,000 – HK$3,000.
Mortgage insurance premium (if applicable): 1.15% – 5% of the loan.
Management fee deposit: typically 2–3 months' management fee.
Utility deposits (water, electricity, gas): around HK$1,000 – HK$3,000 combined.
Independent building survey: HK$3,000 – HK$8,000 if engaged.
Renovation: highly variable; second-hand flats typically HK$300 – HK$800 per sq ft.
7. Three worked examples (first-time, 70% LTV, no MIP)
| Item | HK$8M | HK$12M | HK$18M |
|---|---|---|---|
| Down-payment (30%) | $2,400,000 | $3,600,000 | $5,400,000 |
| AVD | $225,000 | $450,000 | $675,000 |
| Solicitor's fees | $10,000 | $13,000 | $16,000 |
| Agent commission (1%) | $80,000 | $120,000 | $180,000 |
| Misc budget | $15,000 | $20,000 | $30,000 |
| Total (ex-renovation) | $2,730,000 | $4,203,000 | $6,301,000 |
| % of price | 34.1% | 35.0% | 35.0% |
8. FAQ
Which costs are most often overlooked?+
Building-survey fees and the management-fee deposit. For older buildings, you may also face special maintenance levies — check with the Incorporated Owners before signing.
Is agent commission negotiable?+
Yes. The 1% is convention, not law. Larger transactions or repeat clients typically negotiate to 0.75% or 0.5%. Agree it before signing the estate-agency agreement.
Is mortgage insurance worth paying?+
Depends on your cash-flow flexibility and opportunity cost. MIP frees up liquidity but adds long-term interest. Compare MIP vs standard 70% LTV plus a personal loan for the top-up.