Ｄebt-to-income ratio 2026｜How Much Income Do You Need for a Mortgage in Hong Kong?
In Hong Kong, most buyers need to apply for a mortgage to get on the property ladder, but in the past, the stress test was the biggest hurdle for many borrowers. Although the Hong Kong Monetary Authority announced on 28 February 2024 that the stress test requirement would be suspended, applicants still need to meet the debt-to-income ratio requirement. As Hong Kong banks have cut rates several times, the monthly income required for a mortgage has been gradually eased. This article from mReferral Mortgage explains how to calculate DTI and the latest monthly income requirements.
Key points
Hong Kong mortgage debt-to-income ratio (DTI) refers to the proportion of monthly mortgage repayment to monthly income. Starting from 28 February 2024, the HKMA suspended the “interest rate + 2%” stress test, and the DTI cap for both owner-occupied and non-owner-occupied residential properties is now unified at 50%.
What is debt-to-income ratio (DTI)?
Debt-to-income ratio is the ratio of monthly mortgage repayment to monthly income. For example, if your monthly mortgage repayment is HK$20 and your monthly income is HK$40, your debt-to-income ratio is 50%. How much monthly income do you need to buy a home?
Loan amount Required monthly income (after rate cut: 3.25%)
| Loan | Monthly income requirement |
| HK$1,000,000 | HK$8,704 |
| HK$2,000,000 | HK$17,408 |
| HK$3,000,000 | HK$26,112 |
| HK$4,000,000 | HK$34,817 |
| HK$5,000,000 | HK$43,521 |
| HK$6,000,000 | HK$52,225 |
| HK$7,000,000 | HK$60,929 |
| HK$8,000,000 | HK$69,633 |
| HK$9,000,000 | HK$78,337 |
| HK$10,000,000 | HK$87,041 |
(Based on a 30-year repayment period and actual mortgage rates of 3.25%)
What if you want a 70% mortgage? How much income is needed?
If you plan to buy a property and apply for a 70% mortgage, you can estimate the required monthly income based on the property price.
| Property price | Required monthly income |
| HK$1,000,000 | HK$6,093 |
| HK$2,000,000 | HK$12,186 |
| HK$3,000,000 | HK$18,279 |
| HK$4,000,000 | HK$24,372 |
| HK$5,000,000 | HK$30,464 |
| HK$6,000,000 | HK$36,557 |
| HK$7,000,000 | HK$42,650 |
| HK$8,000,000 | HK$48,743 |
| HK$9,000,000 | HK$54,836 |
| HK$10,000,000 | HK$60,929 |
(Based on a 70% mortgage, 30-year repayment period, and actual mortgage rate of 3.25%)
*The above examples are for reference only.
How can you estimate your mortgage borrowing power in advance?
If you want to apply for a mortgage, you can roughly estimate it using the following formula:
Calculate monthly repayment: based on property price, mortgage ratio (for example, 90%), loan term (generally up to 30 years), and current interest rate (mainstream capped rate is around 3.25%).
Include other debts: add up monthly repayments for personal loans, credit card balances, car loans, and so on.
Divide by monthly income: (totalmonthlyrepayments÷monthlyincome)×100%.
If the result is below 50%, the chances of approval are generally higher.
Key factors affecting approval
- Debt burden: credit card debt or outstanding personal loans directly reduce the income available for mortgage assessment.
- Income stability: non-fixed income such as commission or bonuses is usually calculated based on a 6- to 24-month average.
- Property use: the maximum mortgage ratio for rental properties is 70%, but rental income can be counted as part of your income.
- Age limit: banks usually use “75 minus age” or “80 minus age” to determine the maximum repayment period. If older age shortens the loan term, monthly repayment increases, making approval harder.
How to improve your chances
- Add a guarantor: if your personal income is insufficient, you can add a close relative as a guarantor and combine both incomes.Repay small debts: clear credit card debt or personal loans before applying to free up repayment capacity.
- Use a mortgage calculator: it is recommended to use tools such as the mReferral Mortgage Calculator for a more accurate simulation.
mReferral Mortgage has been rooted in Hong Kong for 25 years. If you have questions about applying for HOS mortgages, private residential mortgages, or mortgage refinancing, or if you have questions about personal loans or credit cards, you are welcome to fill in the form and contact our mortgage specialists to learn about the latest mortgage rates and bank cash rebates.
Author: mReferral Editorial Team
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