Policy Address 2026: HOS 95% Mortgage,
HK$20,000 Duty Cut

Measure one: HOS mortgages move to “95”

From the next Home Ownership Scheme (HOS) sales exercise, white-form family applicants with a newborn baby will be able to borrow up to 95% of the flat price. Under the existing arrangements, white-form buyers are generally capped at 90%, while green-form buyers (and Green Form Subsidised Home Ownership Scheme buyers) can reach 95%. In effect, the measure lifts newborn households to the green-form level.

Five percentage points more borrowing changes the down payment most directly — but it also raises the loan, the monthly instalment and the total interest bill. Below are three common HOS price points, calculated over 30 years at an interest rate of about 3.5%, the same assumptions the Housing Authority uses in its sales announcements:

Measure two: up to HK$20,000 off stamp duty

The second measure matches what the Inland Revenue Department has published: eligible families — where the child is born in Hong Kong on or after 16 September 2026and a parent is a Hong Kong permanent resident — can have up to HK$20,000 of stamp duty waived if they buy a residential property within one year before or two years after the birth.

Note that HK$20,000 is a ceiling, not a flat discount. First-time buyers pay ad valorem stamp duty at Scale 2, and under the current bands a property at HK$4m or below already attracts only HK$100— there is nothing to waive. To use the full HK$20,000, the price needs to be around HK$4.1m or above. The table below applies the IRD’s current scale:

The distribution matters: for flats priced between HK$4.1m and HK$5m, HK$20,000 equals anywhere from 17.8% to 100% of the duty — the most noticeable relief. The higher the price, the smaller that HK$20,000 looks in proportion. And for anything at HK$4m or below, which already enjoys the HK$100 duty, this measure adds nothing.

Both measures together: a HK$4.8m HOS household

Putting the two measures into one scenario makes the effect clearer. Assume a couple welcomes their first child after September 2026 and plans to buy a HK$4.8m HOS flat as white-form applicants, over a 30-year term at about 3.5%:

The result: upfront cash drops from about HK$578,000 to about HK$318,000 — roughly HK$260,000 less to prepare. The cost is about HK$1,100 more per month and roughly HK$148,000 of extra interest over the life of the loan. On the common approval standard that the instalment should not exceed half of income, the required income rises from about HK$39,000 to about HK$41,000 — that is often the harder gate, and worth testing with a mortgage calculator before committing.

What did not happen: the Tenants Purchase Scheme

The market had expected a revived Tenants Purchase Scheme (TPS, often called “租置 2.0”), but the Policy Address does not mention it. The Chief Executive explained that the scheme remains contentious — nearly 30,000 units sold under it are still unsold, and pricing and management issues remain unresolved. The Housing Bureau has been asked to continue studying the matter, with government sources indicating the policy review will conclude around the end of the year and a clearer answer only in 2027.

For public housing tenants, that means a revived TPS should not be treated as a near-term shortcut onto the property ladder. It also means that the ladder’s new momentum in this Policy Address comes mainly from the two newborn-linked measures above.

Supply: a medium-term answer, not immediate relief

The housing chapter of the Policy Address and the five-year plan focuses on supply and living space. The direction is clear, though the timelines are long:

• 196,000 public housing units targeted over the next five years, with the composite waiting time for public rental housing targeted to fall below four years by 2030/31.
• A “4:3:3” split for the next decade: public rental, subsidised sale flats and private housing.
• The Northern Metropolis is set to produce 900 hectares of “spade-ready” land and more than 70,000 homes in five years, with about 2,500 hectares across ten years; three university towns cover over 1,000 hectares.
• Larger subsidised sale flats: from units completed in 2031/32, the share of larger units rises to 25%.

These numbers matter for anyone weighing a purchase years from now — rising supply and bigger units are structurally positive. But they do not change how much cash is needed this year. In the short run, mortgage ratios and stamp duty remain the two levers that actually move entry costs.

Three numbers to check before buying

Both measures lower upfront costs, but they do not change a basic fact: buying a flat is a 20-to-30-year cash flow commitment. Before deciding, work through three things in order:

• Run the mortgage calculatorat both 90% and 95% to see the instalment, total interest and required income — and check you can still pay if rates rise.
• Use the savings goal planner to total the upfront items (down payment, stamp duty, legal fees, renovation) and work backwards to a monthly saving number.
• Compare buying versus renting to see how the long-term wealth outcomes differ on the same pot of money.

Neither measure is in force yet

Timing matters here. The stamp duty relief takes effect only after amending legislation is enacted, and the IRD notes that the details may change during the legislative process. The 95% mortgage applies from the next HOS sales exercise; the exact eligibility, income and asset tests will be set out in the Housing Authority’s sales arrangements. In other words, households preparing to buy should not treat either measure as cash already in hand — plan on the rules that exist today.

FAQ

The bottom line: one lower gate, one smaller bill, one let-down

First, the 95% mortgage lowers the gate. A halved down payment is the most visible change, but the loan, instalment and total interest all rise — and the income test gets stricter. Both sides need to be calculated.

Second, the HK$20,000 stamp duty relief cuts the bill, with conditions. The benefit is clearest between HK$4.1m and HK$5m, there is nothing extra at HK$4m or below, and it needs legislation before it applies.

Third, the TPS revival did not happen and supply takes time. 70,000 Northern Metropolis homes, 196,000 public housing units and a sub-four-year waiting time all have timetables, but they are medium-term answers. The near-term equation is still decided by three numbers: cash on hand, monthly repayment capacity and the income test.

Further reading: How much emergency cash? 3 or 6 months, explained, Savings goal planning