{"id":7354,"date":"2026-06-23T14:41:23","date_gmt":"2026-06-23T06:41:23","guid":{"rendered":"https:\/\/gicl.com.hk\/?p=7354"},"modified":"2026-06-25T17:34:11","modified_gmt":"2026-06-25T09:34:11","slug":"%e5%94%90%e6%a8%93%e3%80%81%e8%88%8a%e6%a8%93%e6%8c%89%e6%8f%ad%e6%88%90%e6%95%b8%e3%80%81%e5%b9%b4%e6%9c%9f%e5%8f%8a%e9%ab%98%e6%a8%93%e9%bd%a1%e7%89%a9%e6%a5%ad%e6%8b%92%e6%89%b9%e5%8e%9f%e5%9b%a0","status":"publish","type":"post","link":"https:\/\/gicl.com.hk\/en\/%e5%94%90%e6%a8%93%e3%80%81%e8%88%8a%e6%a8%93%e6%8c%89%e6%8f%ad%e6%88%90%e6%95%b8%e3%80%81%e5%b9%b4%e6%9c%9f%e5%8f%8a%e9%ab%98%e6%a8%93%e9%bd%a1%e7%89%a9%e6%a5%ad%e6%8b%92%e6%89%b9%e5%8e%9f%e5%9b%a0\/","title":{"rendered":"Tong Lau Mortgages: A Guide to LTV Ratios, Tenor, and Why Old Building Mortgages Get Rejected"},"content":{"rendered":"<h1 class=\"wp-block-heading\">Tong Lau Mortgages: A Guide to LTV Ratios, Tenor, and Why Old Building Mortgages Get Rejected<\/h1>\n\n\n\n<p>In Hong Kong, many savvy buyers target old buildings or tenement buildings (Tong Lau) in urban areas for their high usable area and redevelopment potential. However, getting a mortgage for these properties is completely different from private estates. Buyers often face undervaluation or outright rejection due to the property's age or structural issues, resulting in forfeited deposits. This guide breaks down the LTV limits, tenor calculations, and 5 major traps to avoid.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Table of Contents (Quick Links)<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"#toc-1\">What is a Tong Lau \/ Old Building?<\/a><\/li>\n\n\n\n<li><a href=\"#toc-2\">Why are Tong Lau and Old Building Mortgages Different?<\/a><\/li>\n\n\n\n<li><a href=\"#toc-3\">What are the LTV Ratios? Latest Overview<\/a><\/li>\n\n\n\n<li><a href=\"#toc-4\">How is the Tenor Calculated? The \"Age + Tenor \u2264 75\" Formula<\/a><\/li>\n\n\n\n<li><a href=\"#toc-5\">5 Major Reasons High-Age Property Mortgages are Rejected<\/a><\/li>\n\n\n\n<li><a href=\"#toc-6\">2 Practical Tips to Increase Your Approval Success Rate<\/a><\/li>\n\n\n\n<li><a href=\"#toc-7\">FAQ<\/a><\/li>\n<\/ul>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"toc-1\">What is a Tong Lau \/ Old Building?<\/h2>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Definition of a Tong Lau<\/h3>\n\n\n\n<p>In Hong Kong's architectural history, Tong Lau typically refers to residential properties built between the period before World War II and the 1960s. The most distinct feature of these properties is that they are generally low-rise, about three to six stories high. Most importantly, Tong Lau usually do not have elevators installed, requiring residents to use the stairs. Additionally, Tong Lau structures generally lack modern property management, and the maintenance of common areas relies heavily on Owners' Corporations or spontaneous organization by owners.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Definition of an Old Building<\/h3>\n\n\n\n<p>Compared to Tong Lau, the definition of an old building is much broader. In the eyes of Hong Kong's real estate market and financial institutions, single-block Western-style buildings or old-style mansions with elevators that are aged 30 years or older are classified as high-age old buildings. Although these properties have elevators, their exterior walls, plumbing, and public facilities have entered an aging phase, often facing mandatory building inspection orders from the government. From a bank's perspective, the residual value and structural safety of such properties require far more stringent risk assessments.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"toc-2\">Why are Tong Lau and Old Building Mortgages Different?<\/h2>\n\n\n\n<p>Banks assess risk. Unlike modern estates, Tong Lau and old buildings lack professional management, leading to structural risks (e.g., spalling concrete) and lower market liquidity. To protect their assets, banks impose stricter limits on valuations, LTV ratios, and repayment periods.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"toc-3\">What are the LTV Ratios? Latest Overview<\/h2>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">HKMC (Mortgage Insurance) Requirements:<\/h3>\n\n\n\n<p>Many people assume that since the government relaxed mortgage LTV ratios, all properties can easily secure high-ratio loans. In reality, the Hong Kong Mortgage Corporation (HKMC) has very strict internal guidelines for Tong Lau and old buildings. Aside from requiring the applicant to be a first-time buyer for self-occupancy, the HKMC will specifically commission valuation firms to conduct on-site inspections. If the surrounding environment is found to be poor or the building structure is noticeably damaged, the HKMC can lower the approved LTV ratio at any time, or even reject the coverage outright.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Will Banks \"Deduct\" LTV Ratios for High-Age Old Buildings?<\/h3>\n\n\n\n<p>The answer is an absolute yes. Even if you meet all income requirements, if the property's age is too high (e.g., over 50 years), traditional banks will often apply a direct \"discount\" to the standard LTV ratio to mitigate bad debt risks. The common deduction is around 10% to 20%. For example, for a property legally eligible for a 70% mortgage, the bank might ultimately only approve 60% or even 50%, requiring the buyer to prepare a larger down payment.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Old Building LTV Limits by Property Value Range<\/h3>\n\n\n\n<p>Based on current market financing standards, LTV limits for old buildings adjust according to the property's value. To help buyers visually budget their down payment expenses, the table below details the maximum LTV limits for high-age properties across different price brackets:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td>\n<p><strong>Property Value Range<\/strong><\/p>\n<\/td><td>\n<p><strong>Maximum LTV Limit<\/strong><\/p>\n<\/td><td>\n<p><strong>Remarks &amp; Core Conditions<\/strong><\/p>\n<\/td><\/tr><tr><td>\n<p>Below HKD 10 Million<\/p>\n<\/td><td>\n<p>Up to 90%<\/p>\n<\/td><td>\n<p>Can apply for the Mortgage Insurance Programme. Applicants must be salaried workers with fixed income, and the property must be for first-time home buying and self-use.<\/p>\n<\/td><\/tr><tr><td>\n<p>HKD 10M to HKD 15M<\/p>\n<\/td><td>\n<p>Up to 80%<\/p>\n<\/td><td>\n<p>Suitable for middle-class upgraders. Can also flexibly reduce the down payment burden via the Mortgage Insurance Programme.<\/p>\n<\/td><\/tr><tr><td>\n<p>Above HKD 15 Million<\/p>\n<\/td><td>\n<p>Up to 70% (or lower)<\/p>\n<\/td><td>\n<p>For luxury or large-lump-sum old properties above this range, traditional bank approvals are extremely conservative. Buyers must reserve ample capital for cash flow.<\/p>\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">[Banks vs. GICL] Which Old Building Mortgage Method Suits Your Needs Best?<\/h3>\n\n\n\n<p>Banks and Global International Credit Limited (GICL) have fundamental differences when handling old building or Tong Lau mortgages. Banks are strictly regulated by the HKMA and place heavy emphasis on the property's age, structural condition, and the applicant's personal credit rating. If the property has flaws, banks often shut the door immediately. Conversely, GICL is much more flexible during approvals. They focus more on the borrower's actual repayment ability and the property's potential value, remaining willing to grant loans even for high-age properties, properties without original title deeds, or Tong Lau with illegal structures. Although GICL offers greater flexibility, their mortgage interest rates will be adjusted relatively higher due to the higher risks assumed.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"toc-4\">How is the Tenor Calculated? The \"Age + Tenor \u2264 75\" Formula<\/h2>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Standard Bank Tenor Limits for Old Building Mortgages<\/h3>\n\n\n\n<p>In the regular residential market, the maximum mortgage repayment tenor is 30 years. However, when the property is a high-age old building, 30 years often becomes an unattainable number. This is because when calculating the mortgage tenor for an old building, banks must simultaneously consider both the \"lifespan\" of the property and the \"working lifespan\" of the applicant to determine the final repayment period.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Two Formulas Commonly Used by the Industry<\/h3>\n\n\n\n<p>Banks across Hong Kong generally use two core formulas to calculate tenors for old buildings. The first is \"Property Age + Repayment Tenor cannot exceed 75 or 80 years.\" Currently, more small-to-medium banks are relaxing this to \"80 minus property age\" to compete for business. The second formula is \"Applicant Age + Repayment Tenor cannot exceed 80 years.\" Banks will ultimately take the shorter of the two results produced by these formulas.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Calculation Example<\/h3>\n\n\n\n<p>Let's break this down with a simple real-life example.<\/p>\n\n\n\n<p>Scenario 1: Assume the property is 50 years old. Under the stricter \"75 minus property age\" formula, the bank will approve a maximum repayment period of 25 years.<\/p>\n\n\n\n<p>Scenario 2: Suppose it's an extremely old property aged 60 years, and the applicant is a 40-year-old office worker. Under the relaxed \"80 minus property age\" rule, the maximum tenor is 20 years. Under the \"80 minus applicant age\" rule, the theoretical tenor is 40 years (capped at the maximum legal ceiling of 30 years). Since the bank takes the shorter of the two, the final approved tenor for this mortgage will be 20 years.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Why Tong Lau and Old Buildings Struggle to Get 30-Year Mortgages<\/h3>\n\n\n\n<p>Looking at the formulas above, the main reason Tong Lau and old buildings rarely secure a 30-year mortgage is simply their high age. Since most urban Tong Lau were built without modern reinforced concrete standards, banks anticipate the property might lose its habitability in a few decades. Therefore, the advanced property age directly caps the repayment period, forcing the buyer's monthly payments to skyrocket due to the condensed timeline. If traditional banks cut your LTV or refuse a 30-year tenor due to high property age\u2014leaving you with massive repayment pressure or a down payment shortfall\u2014GICL is your strongest financial backer. GICL is currently launching a \"Refinance &amp; Top-up Welcome Offer.\" Whether you are trapped by old building mortgage limits or want to revalue an existing property for cash-out, we provide exceptional perks like up to HKD 10,000 cash rebate or interest-free repayment periods. GICL's professional refinancing solutions not only eliminate the fatal \"Call Loan\" risk of traditional banks with highly flexible approvals but also help you easily cash out large sums to cover your down payment gap.<a href=\"https:\/\/gicl.com.hk\/en\/promotion\/mortgage-refinancing-welcome-offer\/\">GICL offers flexible refinancing and cash-out plans with cash rebates and interest-free periods!<\/a><\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"toc-5\">5 Major Reasons High-Age Property Mortgages are Rejected<\/h2>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. Bank Undervaluation<\/h3>\n\n\n\n<p>Tong Lau and old buildings have sparse transaction volumes, lacking comparable transaction records. During market fluctuations, valuation firms give highly conservative estimates. Once the bank's final valuation falls significantly below your purchase price, you must cover the shortfall out of pocket, or face the crisis of forfeiting your deposit due to insufficient funds.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. llegal Structures, Rooftop Huts, and Encumbrances (Building Orders)<\/h3>\n\n\n\n<p>Many Tong Lau carry historical unauthorized building works (UBWs), such as unauthorized rooftop huts, rear-alley kitchens, or internal subdivisions into subdivided flats. Once discovered by the Buildings Department, repair orders are issued and registered against the title (encumbered\/nailed deed). To avoid legal disputes, traditional banks will almost 100% reject mortgages for properties with unresolved encumbrance records.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Title Deed Issues (Copy Deeds, Incomplete Deeds)<\/h3>\n\n\n\n<p>Old buildings have weathered decades and changed hands multiple times, making the risk of lost title deeds very high. If the original title deeds are found to be incomplete during the transaction, leaving only photocopies registered with the government, it becomes a \"copy deed\" property. Because copy deeds possess massive legal ownership flaws, future transfers are extremely difficult, and the vast majority of traditional banks will not risk accepting their mortgage applications.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Property Condition and Structural Issues<\/h3>\n\n\n\n<p>After submitting the mortgage application, banks or the HKMC often mandate on-site property inspections. If they discover severe water leaks, exposed rebar, large-scale concrete spalling on ceilings, or suspect compromised structural safety, the bank will demand the owner complete thorough repairs and pass an inspection before considering the loan; otherwise, it is outright rejected.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Failing the Income and Stress Test<\/h3>\n\n\n\n<p>Because the repayment tenor for high-age properties is frequently slashed by banks to 15 or 20 years, the monthly repayment amount will increase drastically (assuming the loan principal remains the same). Many buyers only calculate their income requirements based on a 30-year term before paying the deposit. During official approval, they suddenly realize they cannot pass the income assessment and stress test under the significantly higher, condensed monthly payments.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"toc-6\">2 Practical Tips to Increase Your Approval Success Rate<\/h2>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Pre-Valuation + Mortgage Pre-Approval<\/h3>\n\n\n\n<p>Due to the vast number of variables with old buildings, it is highly recommended that buyers provide the detailed information of their desired unit to financial institutions for a free pre-valuation before signing the provisional agreement and paying the initial deposit. Concurrently, buyers should submit their personal income proof to apply for mortgage pre-approval. This allows you to confirm the actual LTV ratio and tenor the bank is willing to approve in advance, ensuring you only enter the market when things are within your control.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Compare Multiple Banks<\/h3>\n\n\n\n<p>Every bank has a vastly different appetite and approval stance for old buildings. Generally, large traditional banks have no shortage of premium new-build mortgage business, so they tend to be extremely strict and conservative when approving Tong Lau. Conversely, some medium-sized banks, local banks, or institutions experienced in old district redevelopment might offer greater flexibility in the property age formulas to win business. Therefore, buyers must shop around and submit applications to multiple institutions to increase their chances of success.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"toc-7\">FAQ<\/h2>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Can a Tong Lau get a 90% mortgage?<\/h3>\n\n\n\n<p>Yes, but the conditions are extremely harsh. The property must be purely for residential use, and the applicant must be a first-time buyer purchasing it for self-use. Most crucially, the property age cannot be too high\u2014it must meet the HKMC's basic tenor requirements even after deductions\u2014and the structure must show no signs of severe subdivision or illegal structures.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Is the mortgage tenor for old buildings definitely less than 30 years?<\/h3>\n\n\n\n<p>This entirely depends on the contrast between property age and applicant age. Previously, most banks used the \"75 minus property age\" formula, but now many have relaxed it to \"80 minus property age.\" If the property is only around 30 years old, under the new \"80 minus age\" formula, a sufficiently young applicant can still successfully secure the maximum 30-year repayment tenor. But if the property is extremely old (over 50 or 60 years), the tenor is often shortened to around 20 years.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Which banks are more lenient with old building \/ Tong Lau mortgages?<\/h3>\n\n\n\n<p>Usually, large chain banks are the most conservative when approving high-age properties, often resulting in undervaluations. In contrast, some local medium-sized banks or Chinese-funded banks are more familiar with Tong Lau in older districts. They offer more flexibility regarding approvals, inspection requirements, and repayment tenors. Most importantly, these banks offer the same Prime\/HIBOR mortgage rates as large banks; they won't deliberately charge high interest simply because it's a Tong Lau.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What should I do if there is an appraisal shortfall?<\/h3>\n\n\n\n<p>If you unfortunately face an undervaluation, you should immediately ask your mortgage specialist to request reassessments from different valuation firms, as estimates often vary between firms. If the valuation still cannot be raised, the buyer will need to consult their family to deploy extra funds to increase the down payment ratio. Alternatively, seek a large \"Owner's Personal Loan\" from highly flexible credit institutions to easily bridge the gap without touching the title deed or harming the original mortgage.<\/p>\n\n\n\n<p>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>Buying and selling a Tong Lau or high-age old building is a wealth investment that acts as a tug-of-war against time and regulations. To successfully secure a mortgage, you must always keep the three critical elements in mind: LTV limits, repayment tenor formulas, and the five major rejection traps. To prevent catastrophic financial losses from forfeited deposits due to mortgage issues, smart buyers must conduct thorough valuations and mortgage pre-assessments before putting down any money.<\/p>\n\n\n\n<p>Whether you are planning to buy an old building in the urban area to await redevelopment acquisition, or you are facing various tricky hurdles with a Tong Lau mortgage, GICL's professional team can provide you with the most suitable financial strategies.<a href=\"https:\/\/gicl.com.hk\/en\/contact-us\/\">Welcome to contact our GICL mortgage specialists today<\/a>to book a free professional mortgage assessment service, helping you win securely and get on the property ladder with ease!<\/p>","protected":false},"excerpt":{"rendered":"<p>\u5510\u6a13\u6309\u63ed\uff1a\u820a\u6a13\u6309\u63ed\u6210\u6578\u3001\u5e74\u671f\u53ca\u9ad8\u6a13\u9f61\u7269\u696d\u62d2\u6279\u539f\u56e0\u62c6\u89e3 \u5728\u9999\u6e2f\u9019\u500b\u5bf8\u91d1\u5c3a\u571f\u7684\u57ce\u5e02\uff0c\u5f88\u591a\u7cbe\u660e\u7684\u8cb7\u5bb6\u6703\u5c07\u76ee\u5149\u6295\u5411\u5e02\u5340 [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":1475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[44,42,43,41,40],"class_list":["post-7354","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-44","tag-42","tag-43","tag-41","tag-40"],"acf":[],"_links":{"self":[{"href":"https:\/\/gicl.com.hk\/en\/wp-json\/wp\/v2\/posts\/7354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gicl.com.hk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gicl.com.hk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gicl.com.hk\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/gicl.com.hk\/en\/wp-json\/wp\/v2\/comments?post=7354"}],"version-history":[{"count":5,"href":"https:\/\/gicl.com.hk\/en\/wp-json\/wp\/v2\/posts\/7354\/revisions"}],"predecessor-version":[{"id":7462,"href":"https:\/\/gicl.com.hk\/en\/wp-json\/wp\/v2\/posts\/7354\/revisions\/7462"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gicl.com.hk\/en\/wp-json\/wp\/v2\/media\/1475"}],"wp:attachment":[{"href":"https:\/\/gicl.com.hk\/en\/wp-json\/wp\/v2\/media?parent=7354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gicl.com.hk\/en\/wp-json\/wp\/v2\/categories?post=7354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gicl.com.hk\/en\/wp-json\/wp\/v2\/tags?post=7354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}