💰 Home Buying Budget Calculator: A Complete Analysis of Down Payment, Stamp Duty, and Miscellaneous Fees

The editor will help you break it down item by item so that you don’t get caught out at the last minute due to “not having enough money”!

Buying a property in Hong Kong has always been a major life event, with prices often ranging from several million to tens of millions. Many people assume that saving for the down payment is all they need to do. However, upon taking possession of the property, they discover a host of hidden expenses: stamp duty, legal fees, agent commissions, renovation costs, management fees... everything costs money. They might have thought they had saved enough, only to find they were "hundreds of thousands short"—a truly significant setback.

Today, I'll share with you a breakdown of what you need to prepare for a complete budget when buying a home. I'll help you calculate everything from the down payment to miscellaneous expenses, so you can confidently buy one.

1️⃣ Initial funding🏦

Down payment = entry fee + sense of stability

General mortgage arrangements of Hong Kong banks:

• First-time homebuyers (first-time homebuyers): If the property price is below 8 million, you can apply for a mortgage of up to 90%, but you must meet the stress test and income requirements.
• Property price over NT$8 million to NT$10 million: Maximum mortgage rate: 80%.
• For properties priced over NT$10 million, only 60% to 70% of the approval rate will be granted.

For example:

• If you buy a 6 million unit on the first floor and take out a 90% mortgage, the down payment is only 600,000.
• But if you buy a 12 million unit on the first floor, assuming you can only get a 70% mortgage → the down payment is 3.6 million.

👉 Editor's note: Don't assume you'll be approved if you have the "lowest down payment." Banks will consider your income, liabilities, and age. If you don't meet the requirements, your loan-to-value ratio will be reduced, and you'll need a higher down payment.

2️⃣ Stamp Duty 💸

The biggest hidden obstacle for buying a property in Hong Kong is stamp duty!

General Situation (First-time Buyers)

• Property price 2 million or less: 100 yuan (indicative)
• 2 million to 2.17 million: Property price × 1.5%
• NT$2.17 million to NT$3 million: Property price × 3%
• 3 million to 3.29 million: Property price × 4.5%
• 3.29 million to 4.42 million: Property price × 6%
• 4.42 million to 6 million: Property price × 7.5%
• 6 million to 20 million: Property price × 8%
• NT$20 million and above: Property price × 8.5%

Non-first-home buyers

• Additional Stamp Duty (SSD): This is charged on short-term speculation and can be as high as 20% of the property price if the property is resold within 36 months of purchase.
• Buyer’s Stamp Duty (BSD): Non-Hong Kong permanent residents must pay an additional 15%

👉 Editor's Tip: If you're a first-time homebuyer, stamp duty is already a significant expense. Be sure to calculate this before buying a property, so you don't end up with no money to pay.

3️⃣ Legal fees ⚖️

When buying or selling a property, you must go through a lawyer to handle the documents. The fees are usually:

• Around 20,000 to 30,000 (depending on the property price)
• Including temporary sales agreement, formal sales agreement, and property deed registration

👉 Editor’s advice: Don’t go for the cheapest option just to save a few thousand dollars. The law firm should be reliable, as errors in the documents can have serious consequences.

4️⃣ Agent Commission🏢

When buying a property through a real estate agent, you will generally be required to provide:

• 1% of the property price (sometimes negotiable down to 0.5%)

For example:

• Buy 6 million units → Commission is approximately 30,000 to 60,000

👉 Editor's take: When the market is quiet, it's easier to lower commissions. However, if it's a hot new property, the agent may not be willing to reduce it.

5️⃣ Mortgage insurance📝

If you borrow a high-ratio mortgage (for example, 90%), you need to buy "mortgage insurance."

• The insurance premium is approximately 1% to 3% of the loan amount.
• Can be paid in one lump sum or added to mortgage payment

For example:

• Buy a 5 million unit, borrow 90% → mortgage 4.5 million
• Assuming a 2% premium → approximately 90,000

👉 Editor's note: Many buyers overlook this fee and end up getting a shock when it comes to approval.

6️⃣ Renovation Fee🛠️

• Basic decoration: 300,000 to 500,000 (small units)
• Mid-range to high-end renovation: NT$500,000 to NT$1,000,000 (depending on the size of the unit)
• Luxury decoration: more than 1 million

👉 My experience: Renovation will always cost more than your budget, as there are often additions and subtractions. It's best to save 10-20% as a buffer.

7️⃣ Management fees and miscellaneous fees🏘️

• Management fee: ranging from $3 to $6 per square foot (up to $10 or more for luxury properties)
• Rates and government rent: approximately 5% of the property's valuation
• Maintenance Fund: Pay special attention to old buildings, as tens of thousands of dollars may be required at any time.

👉 Editor’s note: Buying a property is not a one-time expense; long-term ownership incurs fixed costs.

8️⃣ Moving expenses🚚

• Small moving: 3,000 to 5,000
• Large-scale moving: more than NT$10,000 (depending on the number of furniture and appliances)

Although moving expenses are not a large sum compared to the down payment and stamp duty, if you need cash temporarily, you still need to prepare some in advance.

9️⃣ Example calculation 📊

Suppose you buy a second-hand building worth 6 million yuan, and the first-time buyer:

• Down payment (90% mortgage): 600,000
• Stamp duty (7.5% of property price): 450,000
• Legal fees: 25,000
• Agent commission (1%): 60,000
• Mortgage insurance (assuming 2%): $90,000
• Renovation cost: 400,000
• Moving expenses: 10,000

Total expenditure: approximately 1.635 million

👉 Editor’s summary: Although it seems like a down payment of 600,000 HKD is enough to buy a house, after adding stamp duty and other miscellaneous fees, you actually need to prepare more than 1.6 million HKD!

🔟 Editor's Summary✨

A homebuying budget doesn't just include the down payment; there are also a host of hidden costs to consider. Here are some tips:

• Prepare enough funds first → It is best to have an extra buffer
• Don't rush → Wait until your financial foundation is stable before taking action
• Do your homework → Know exactly how to spend your money

🙋 Editor's message:
Buying a home is undoubtedly a major life event. Don't rush into it out of fear of missing out, ultimately becoming a "home slave." Having a clear budget in mind will allow you to secure a home and enjoy a stable and happy life.

📋 Property Budget Checklist: Are you ready to tick each item?

1️⃣ Initial funding🏦

☑️ I have prepared the down payment (10%-20% or more of the property price)
☑️ I know the maximum loan-to-value ratio I can apply for (90%/80%/70%)
☑️ I have extra reserves to deal with emergencies

2️⃣ Stamp Duty 💸

☑️ I know if I am a first-time homebuyer☑️ I have calculated how much stamp duty I will have to pay (based on the property price bracket)
☑️ If it is not my first homebuyer, I have considered the Additional Stamp Duty (SSD) and Buyer’s Stamp Duty (BSD)

3️⃣ Legal fees ⚖️

☑️ I have found a reliable law firm ☑️ I have set aside about 20,000 to 30,000 in legal fees

4️⃣ Agent Commission🏢

☑️ I know the commission is about 1% of the property price. ☑️ I have discussed with the real estate agent and tried to get a commission reduction.

5️⃣ Mortgage insurance📝

☑️ If I take out a high-ratio mortgage, I have already calculated the mortgage insurance premium (approximately 1%-3% of the loan amount)
☑️ I know that the premium is paid in one lump sum and it is included in the contribution

6️⃣ Renovation Fee🛠️

☑️ I have already decided on a budget for renovation (starting from NT$300,000 to NT$500,000)
☑️ I have an extra 10-20% buffer to avoid overspending

7️⃣ Management fees and miscellaneous fees🏘️

☑️ I know the approximate management fee per square foot of the unit. ☑️ I have calculated the rates, land rent and maintenance fund. ☑️ I know the fixed monthly expenses after buying the property.

8️⃣ Moving expenses🚚

☑️ I have set aside moving expenses (3,000 to 10,000 or more, depending on the size)

9️⃣ Example Calculation 📊

☑️ I have used the example of a "6 million unit" and calculated the actual cost to be over 1.6 million. ☑️ I understand that the down payment is not equal to the total cost, and there are stamp duties and miscellaneous fees to be added.

🔟 Final Check✨

☑️ I have enough down payment + extra savings ☑️ I have calculated all hidden costs (stamp duty, legal fees, commissions, insurance, renovations)
☑️ I am mentally prepared to bear the mortgage and miscellaneous expenses in the long term☑️ I will not force myself to buy something just because I am afraid of missing out

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🙋 Editor's note:
If you can tick most of the boxes, congratulations! You're basically ready to buy a home! However, if there are still many boxes left unchecked, be cautious. This may indicate insufficient funds or insufficient research. Don't rush. Save more before you buy. This will give you peace of mind and stability.