Under Section 44(1) of the Conveyancing and Property Ordinance, "a mortgage of a legal estate, including any second or subsequent mortgage of that legal estate, may be effected at law only by a charge by deed expressed to be a legal charge". Therefore, a majority of the security documents over land in Hong Kong should, strictly speaking, be called "legal charges". However, as "mortgage" and "mortgage loan" are commonly used, these terms will be used throughout this monograph whether the relevant mortgage document is a "legal charge" under Section 44(1) of the said Ordinance.

There are a number of ways for a property buyer to raise a mortgage loan and a variety of mortgage plans on the market. This monograph briefly describes the various types of loans and mortgages available and the factors that a bank will normally take into account when considering a mortgage loan application. The Mortgage Insurance Programme provided by the Hong Kong Mortgage Corporation Limited (HKMC) is also introduced. The programme assists members of the public in purchasing their own homes and is likely to be considered when a purchaser intends to buy a new home with a mortgage loan.

This monograph serves as a general introduction to estate agency practitioners on mortgages. Banks may change their policies and offer new mortgage products from time to time, and the information given here does not pertain to any particular situation or case. Readers should seek advice and information from banks, lawyers and other relevant professionals on any matters encountered in specific situations and contact HKMC for further details of the Mortgage Insurance Programme.