When consumers plan to buy a property, many choose to finance the purchase through a mortgage, using the property as collateral to obtain financing, rather than paying the full purchase price in one lump sum. So, what exactly does a property mortgage mean, and what are the benefits of applying for one?
Below is an introduction to property mortgages, explaining mortgage loan-to-value ratios and interest rates, comparing first mortgages, second mortgages, refinancing, top-up mortgages, and Home Ownership Scheme (HOS) homeowner loans, together with a mortgage calculator to help you understand mortgage interest, property valuation, repayment tenor, and instalment amount.
Regardless of the property value or whether the property is owner-occupied, the maximum mortgage loan-to-value ratio (LTV) offered by traditional banks is generally 70%, while the maximum debt-service-to-income ratio is 50%.
If mortgage insurance is purchased, the LTV can be increased to as high as 90%. However, this is generally only applicable to first-time homebuyers who are Hong Kong Identity Card holders with stable income, and it also involves additional mortgage insurance premium costs. In addition, the property cannot be rented out.
GICL Global Credit offers low-interest property mortgage services with an LTV of up to 80%, with approval requirements lower than those of banks and a shorter vetting period.
Most Hong Kong banks offer mortgage plans based on either Prime Rate (“P Plan”) or HIBOR (“H Plan”), and both are floating-rate mortgage products. Under an H Plan, the interest rate moves with the market, so rate cuts are reflected more quickly but volatility is higher. By contrast, a P Plan is relatively more stable, but rate reductions may be slower.
Based on Sept 2025 data, bank P-rates are around P-1.75% to P-2.1%; H-rates are around H+1.3% to H+1.6%, capped at P-1.75% to P-2.1%.
GICL Global Credit’s low-interest mortgage service offers rates from as low as 8% per annum, with no stress test required and a streamlined approval process, enabling borrowers to obtain mortgage financing more quickly. You may also refer to the mortgage calculator to better estimate mortgage interest and repayment costs.
There are many types of property mortgages. Borrowers can compare the differences among low-interest first mortgages, second mortgages, refinancing, top-up mortgages for cash-out, and homeowner loans, and refer to the property mortgage calculator for repayment estimates.
What is the difference between a first mortgage and a second mortgage? A first mortgage refers to either a newly originated mortgage on a property purchase, or a remortgage of a fully paid-off / already acquired property for cash-out purposes. Once the first mortgage is completed and the property is charged, your title deeds must be deposited with the lender, and monthly repayments will then begin. If you wish to increase your LTV or raise additional cash, you may apply for a second mortgage.
Refinancing is also a type of mortgage loan. It means transferring the existing mortgage from the current lender to another bank or lending institution. Through refinancing, homeowners may have the opportunity to release additional funds for liquidity purposes. If a homeowner applies to refinance with a bank, he or she must submit relevant personal information and income proof for approval, and must also pass the HKMA mortgage stress test, so the approval process is usually longer and more stringent.
GICL is a listed mortgage company that provides homeowners with low-interest mortgage and refinancing services, helping them unlock property value and create more financial opportunities. Unlike banks, our first mortgage services are not restricted by the borrower’s age or the age of the property, and borrowers are not required to provide income proof. We offer repayment terms of up to 240 instalments, together with a revolving flexible repayment plan, an LTV of up to 80%, and annual mortgage interest rates from as low as 8%.
In addition, to help reduce the cost of refinancing, Global Credit covers the legal fees and valuation fees incurred when applying for a property mortgage. Approval can be granted on the same day, and funds can be disbursed as fast as the next business day.
二按是什麼意思？Second Mortgage按揭貸款是指在原有承造樓按的銀行，增加樓宇按揭貸款額或在其他貸款機構二按按揭套現，業主們若有任何投資或生意上的周轉時，便可以考慮利用物業申請二按套現。
If a homeowner wishes to obtain additional financing from the original mortgage bank by way of a second mortgage, relevant personal information and income proof must be submitted for bank approval, and the borrower must also pass the HKMA mortgage stress test. As a result, obtaining bank approval for second mortgage cash-out is not easy.
In addition, for homeowners who want a higher overall financing ratio but are unable to qualify for mortgage insurance, the mortgage amount offered by a bank may be insufficient. They may therefore need to apply to a finance company for a second mortgage in order to obtain the remaining financing at a higher LTV.
Global Credit provides property second mortgage services for homeowners. Unlike many lenders in the market, our low-interest second mortgage service is not restricted by the borrower’s age or the age of the property, and it covers a wide range of property types, including private residential properties, tenement buildings, HOS flats with premium already paid, village houses, industrial units, shops, offices, car parks, and land sites.
Borrowers are also not required to provide any income proof. The repayment period for a second mortgage can be as long as 180 instalments, with a revolving flexible repayment plan, and interest rates from as low as 12%. As the second mortgage lender is not the first charge holder, the interest rate on a second mortgage is generally higher than that of a first mortgage.
Before comparing a second mortgage and a top-up mortgage, it is important to understand what a top-up mortgage means. A top-up mortgage for cash-out refers to a homeowner who owns a mortgage-free property (including certain HOS units) applying to the original bank to remortgage the property for cash, or an existing mortgagor borrowing additional funds from the original mortgage bank, effectively taking out more financing on the same property. Hence the term “top-up mortgage”, meaning increasing the existing mortgage charge in order to release cash.
When property prices rise, applying for a top-up mortgage may be advantageous because the available loan headroom may increase with the property value. Homeowners may therefore be able to unlock more funds from the property, and may also enjoy a cash rebate on the top-up mortgage. However, approval criteria for top-up mortgages are generally stricter. The approved loan amount and mortgage interest rate will depend on factors such as property valuation and the borrower’s repayment ability.
By contrast, a second mortgage means taking out another mortgage loan on top of the existing mortgage from a different lending institution. Since two separate financial institutions are involved, it is called a second mortgage.
When a borrower transfers an existing mortgage to another financial institution, this process is called refinancing. Therefore, refinancing is different from a second mortgage.
A property refinancing loan requires the property to be pledged as collateral in order to obtain the loan amount. Applicants hope that through refinancing, they can secure a low-interest loan, earn cash rebates, and cash out a larger loan amount for working capital.
Rate-and-term refinance (flat-balance refinance): transferring the outstanding mortgage balance to another lender without increasing the loan amount.
Cash-out refinance: when the property has appreciated, the borrower transfers the mortgage to another lender, obtains a new valuation and new loan amount, repays the outstanding mortgage balance, and cashes out the increased equity for working capital, emergency use, or other purposes.
A refinance should generally be carried out only after the penalty period has expired, usually after two to three years; otherwise, the original bank or lender may charge an early repayment penalty. However, the rebate available through refinancing is generally higher than that for a top-up mortgage, and borrowers who top up with their original bank may not enjoy intermediary rebates.
Global Credit provides homeowners with low-interest refinancing services. Compared with banks, our refinancing service is not limited by the borrower’s age or the age of the property, and borrowers are not required to provide income proof. Mortgage rates are as low as 8%, and we also provide property valuation and promotional calculations for applicants, helping them raise emergency liquidity more easily.
Global Credit’s personal loan for HOS homeowners is specifically designed for owners of HOS flats with unpaid land premium. It does not require the title deeds to be pledged as collateral, and is offered in the form of a personal loan, making the process faster than refinancing or a top-up mortgage. In addition, similar to a mortgage loan, applicants who own an HOS flat have a property asset, which indicates a certain level of repayment ability. Therefore, the interest rate for an HOS homeowner loan is generally lower than that of an ordinary personal loan, while the cash-out amount is also typically higher. Once the HOS flat valuation is completed, the homeowner may obtain a substantial personal loan in a lump sum to repay credit card balances or meet liquidity needs quickly and conveniently.
If you urgently need funds and only own an HOS flat with unpaid land premium, and that flat is already mortgaged to a bank or has already been fully repaid, so that it cannot be used again as collateral to borrow from a bank, there is no need to panic.
Global Credit can help you through difficult times. Our low-interest HOS loan service, which is effectively a homeowner personal loan, can be approved in as fast as 5 hours. You do not need to mortgage your property, provide the title deeds, or submit income proof. This saves you from cumbersome documentation and there is no need to visit a law firm in person. From application and approval to disbursement, the entire process can be completed at Global Credit’s office. Borrowers may also enjoy a repayment period of up to 120 instalments, making repayment easier.
Now that you have a full understanding of the five types of mortgage solutions above — first mortgage, second mortgage, refinancing, top-up mortgage, and HOS homeowner loan — what exactly are the benefits of a mortgage? Why do so many people choose mortgage financing and repay a home loan over many years instead of paying the full amount upfront? The answer is simple. For most people, it takes a long time to accumulate enough savings to pay the full purchase price in one go, and they would not be able to move into the property before making full payment. On the other hand, a mortgage loan allows borrowers to spread a substantial payment obligation over many years, leaving more cash on hand. Mortgage repayments and interest can be estimated using the mortgage calculator or the mortgage repayment calculator below, and you may also leave your basic details for a property valuation assessment.
Homeowners can also cash out against their property and make more flexible use of the untapped value in the property for personal investment. From an asset growth perspective, this may be more sustainable, which is why many people choose low-interest property mortgage loans and repay their home financing by instalments.
For more details on individual products, please refer to our First Mortgage or Second Mortgage service guides.
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