Published on and written by Cyril Jarnias
Navigating the complex world of real estate financing in Hong Kong may seem like a daunting task, but with the right information and strategies, it’s possible to turn this dream into reality.
Financing Options and Best Practices
In this article, we’ll explore different financing options along with best practices to maximize your chances of securing a loan. Whether you’re approaching local banking institutions or using brokerage services, understanding the nuances of the Hong Kong real estate market is crucial for success.
Eligibility Criteria and Required Documents
Additionally, we’ll cover essential eligibility criteria and required documents to obtain competitive rates tailored to your specific needs.
Real Estate Financing for Foreigners: Is It Possible in Hong Kong?
General Conditions for Foreigners Obtaining Real Estate Financing in Hong Kong:
| Criterion | Detail |
| Nationality/Residency | No nationality restrictions; no special permit requirements |
| Loan-to-Value Ratio (LTV) | Up to 70% of property price, identical for residents and non-residents |
| Repayment Capacity | Monthly payments must not exceed 50% of monthly income |
| Maximum Loan Term | Varies by institution, typically up to 30 years |
Since 2024, requirements for foreigners have been aligned with those for locals, with relaxed criteria and removal of the specific reduction previously applied to the maximum borrowable amount.
Typically Required Documents:
- Valid passport
- Proof of overseas residence
- Official income proofs (pay stubs, tax returns)
- Recent bank statements
- Preliminary contract or signed purchase offer
Typical Interest Rates in 2025:
Rates vary by bank and profile:
- Fixed or variable rates around 3% to 5% annually
- Rate also depends on loan amount, property type, and sometimes country risk related to applicant
List of Specific Taxes Applicable to Foreign Investors:
| Tax/Fee | Applicable Rate | Remarks |
| Buyer’s Stamp Duty (BSD) | 15% | Applies only to non-residents |
| Ad Valorem Stamp Duty | Up to 15% | May be added to BSD from second property onward |
| Special Stamp Duty | 10% to 20% | If resold within three years of purchase |
The combined BSD + AVD can bring total initial taxation to nearly 30%, making investment more expensive than for local residents.
Practical Tips When Interacting with Local Banks:
- Prioritize initial contact with a local English-speaking mortgage broker.
- Carefully prepare all financial documents translated into English if needed.
- Verify with banks their experience in handling international applications.
No access to social programs or subsidized housing. Additional taxation (BSD) is also specific to foreigners. However, recently there are no longer any limitations on LTV ratio or major additional requirements regarding minimum duration or contract nature.
Tax Particularities:
Main restrictions now relate exclusively to additional taxation and no longer to the actual granting of real estate credit.
Tax advantages: Hong Kong does not offer specific relief for foreign real estate investors; only the potential absence of capital gains tax may constitute an indirect attraction.
Useful Resources & Professionals Who Can Assist Foreigners in Their Process:
- Real estate brokers specialized in “expatriation” or “international”
- Multilingual bank agents dedicated to international clientele
- Legal firms specialized in Hong Kong real estate law
Local professional associations (Hong Kong Institute of Real Estate Administrators)
International platforms specialized in banking assistance (Keller Henson)
French-speaking expert websites on international real estate
To Maximize Your Chances:
- Compare multiple bank offers before any commitment.
- Be accompanied by an experienced local professional during each contractual step.
- Anticipate administrative delays related particularly to enhanced tax verification applicable to funds originating outside HKSAR.
The Hong Kong market today stands out for its great legal openness but remains particularly expensive tax-wise for non-residents.
Good to Know:
To obtain real estate financing in Hong Kong, foreigners generally need to provide documents such as a passport, proof of income, and often a bank certificate. Eligibility conditions include good credit rating and stable income source, while interest rates are typically similar to those for residents but may vary according to risk profile. The Hong Kong market doesn’t impose drastic restrictions on foreign investments, however it also doesn’t offer specific tax advantages for these investors. Interactions with local banks can prove complex, so it’s advisable to use mortgage brokers who know the market well and can guide the process. Compared to residents, foreigners sometimes need to provide more guarantees and may encounter more administrative formalities. Using services of specialized financial advisors and experienced business lawyers in Hong Kong real estate law can prove worthwhile to successfully navigate this process and avoid common pitfalls.
Essential Documents for a Successful Real Estate Financing Application
To succeed in a real estate financing application in Hong Kong, it’s imperative to present a strong file containing several types of essential documents. Local financial institutions typically require the following items:
Identity Documents:
- Valid passport
- Hong Kong ID card (for residents)
- Visa or residence permit (for non-residents)
Income Proofs:
- Pay stubs from last three to six months
- Employment contract
- Recent annual tax returns
- Employment certificate or official employer letter
Recent Bank Statements:
- Checking and/or savings account statements typically covering three to six months
Proof of Current Address:
- Recent utility bill (water, electricity, phone)
- Current rental agreement or notarized deed if owner
Documents Related to Down Payment and Personal Savings:
| Type | Accepted Examples |
|---|---|
| Down payment proof | Receipts/bank certificates proving fund transfer for down payment |
| Available savings | Statements justifying source and availability of personal funds |
Other documents that may be required depending on profile:
- Proof of banking or credit history (report from local or international credit bureau)
- Professional recommendation letters (current/former employer, main bank)
Differences Between Residents and Non-Residents:
- Residents must provide their local ID card.
- Non-residents, meanwhile, must attach a valid passport copy along with any document justifying their legal status in Hong Kong.
- Since 2024, credit access has been relaxed for non-residents who no longer need a higher down payment compared to locals. The loan-to-value ratio is now standardized (70% maximum) regardless of status.
Specific Requirements:
- Some banks may require detailed proof of fund source used for initial down payment to ensure legality.
- Strong banking history along with healthy checking account management are regularly examined.
Summary in List Form:
- Official identity document
- Regular and stable income proofs
- Recent bank statement(s)
- Clear and dated proof of residence
Summary Table:
| Category | Resident | Non-Resident |
|---|---|---|
| Identity | HKID card | Passport + visa/residence permit |
| Income | Pay stubs/tax documents | Same |
| Bank | Local account statement | Local/international account statement |
| Address | Local bill/lease | Same (+ foreign proof accepted) |
| Down Payment/Savings | Transfer proof/receipts | Same |
Thorough and complete preparation of this file greatly facilitates the procedure with Hong Kong banks—an essential criterion for obtaining quick pre-approval.
Good to Know:
To succeed in a real estate financing application in Hong Kong, it’s crucial to prepare comprehensive documentation aligned with local lenders’ expectations. Identity documents such as passport for non-residents or ID card are essential. You’ll need income proofs like recent pay stubs or tax returns from the last three years, accompanied by bank statements for a period typically of six months. Current proof of address, such as a utility bill, is often required. Documents demonstrating ability to provide a down payment, like savings statements, are also necessary. Residents sometimes need to provide fewer personal details than non-residents, who will often see requirements for credit history proof and recommendations from professionals or employers. Some lenders may request additional specific information related to your financial situation, so preparing extra documents can be an advantage.
Meeting the Criteria: Conditions to Fulfill for a Real Estate Loan in Hong Kong
The essential conditions for obtaining a real estate loan in Hong Kong are structured around strict eligibility criteria, precise financial proofs, and standardized requirements, particularly for non-residents.
Financial Institutions’ Eligibility Criteria
- Hong Kong banks accept real estate loan applications from both residents and non-residents.
- Since 2024, conditions have been relaxed: processing is now identical for all borrowers.
- No special status (resident or foreigner) is required to access financing.
Need for Strong Credit History
- An impeccable solvency record is required: credit report verification (local and international if available).
- Banks carefully examine previous repayment capacity along with absence of banking incidents.
Generally Required Down Payment Percentage
| Category | Maximum Loan-to-Value Ratio |
| Primary residences | 70% |
| Non-residents | 70% |
| Commercial/industrial properties | 70% |
The minimum required down payment therefore corresponds to 30% of the property price.
Required Financial Documents
Typical list of required supporting documents:
- Valid identity document (passport or HKID card)
- Proof of current residence
- Recent bank statements (typically three months)
- Pay stubs or equivalent proofs over three months
- Employment contract and certificate
- Recent tax returns
Self-employed individuals will also need to provide official proof of professional status along with certified financial statements.
Required Repayment Capacity
The financial institution requires:
- That the total monthly payment does not exceed 50% of net monthly income, all credits combined.
Specific Restrictions for Non-Residents
Key points regarding foreigner credit access:
| Condition | Local Resident | Non-Resident |
| Credit access | Yes | Yes |
| Loan-to-value ratio | Up to 70% | Up to 70% |
| Enhanced documents | Standard | Increased verification depending on country* |
*Anti-money laundering checks may be added depending on nationality or fund source.
No legal restrictions currently block foreigner access to purchase or bank real estate financing. However, certain schemes such as the Capital Investment Entrant Scheme explicitly exclude real estate as eligible assets for this particular investor visa type.
Requirements Related to Income, Employment and Guarantees
To be eligible:
Income
- Justify stable income through contract or recent pay stubs.
- Sometimes provide employer letter confirming seniority and salary level.
Employment
- Permanent contract preferred; self-employed accepted subject to additional documentation.
Guarantee
- The financed property itself always serves as primary mortgage guarantee, but a solvent co-borrower may be required in case of atypical profile.
Essential Summary:
To obtain a real estate loan in Hong Kong: have a documented healthy financial situation, provide minimum 30% down payment, present all standard proofs and demonstrate that total annual service does not exceed 50% of net monthly income, with no particular restriction related to resident/non-resident status.
Good to Know:
To obtain a real estate loan in Hong Kong, it’s essential to meet lenders’ strict criteria, which vary depending on financial institutions and often require an impeccable credit history. Applicants generally need to provide a down payment of 40 to 50% of the property purchase price, while non-residents may face even higher percentages due to additional restrictions. It’s crucial to demonstrate sufficient repayment capacity through financial documents such as detailed bank statements, income proofs, and proven employment stability. Income often needs to reach a certain minimum threshold, and the employer may be subject to specific conditions. As for guarantees, they sometimes need to include real estate properties or other assets considered sufficiently secure by the lender, so as to reduce the perceived risk by the banking institution.
Disclaimer: The information provided on this website is for informational purposes only and does not constitute financial, legal, or professional advice. We encourage you to consult qualified experts before making any investment, real estate, or expatriation decisions. Although we strive to maintain up-to-date and accurate information, we do not guarantee the completeness, accuracy, or timeliness of the proposed content. As investment and expatriation involve risks, we disclaim any liability for potential losses or damages arising from the use of this site. Your use of this site confirms your acceptance of these terms and your understanding of the associated risks.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
