Reverse Mortgage Programme

Reverse Mortgage Programme

The Reverse Mortgage Programme is operated by HKMC Insurance Limited (HKMCI), a wholly-owned subsidiary of The Hong Kong Mortgage Corporation Limited, which enables people aged 55 or above to use their residential properties in Hong Kong as security to obtain reverse mortgage loans.

Product Features

Flexible payment term

Monthly payouts over a fixed period of 10, 15 or 20 years or throughout the borrower’s entire life.

Lump-sum payout

Lump-sum payouts for specific purposes such as refinancing of an existing reverse mortgage or full repayment of other existing mortgage of the borrower’s property which is used as security for the relevant Reverse Mortgage Loan (not applicable to the property owned by a limited company) , settlement of land premium for subsidised housing property, payment for home improvement, repairs and maintenance, medical expenses etc.

Flexible arrangement to rent out property

Mortgaged property can be rented out under specific circumstance for a higher income.

Lifetime home residence

Property owner is entitled to stay in the property for the rest of his life, even after the payment term is due. However, interest and mortgage insurance premium will be debited to the outstanding loan amount.

No repayment during lifetime

No repayment of outstanding loan amount is required during the borrower’s lifetime, unless the Reverse Mortgage Loan is terminated under specific circumstances.

No penalty for early repayment of loan

Full repayment of Reverse Mortgage Loan and redemption of mortgaged property may be made at any time without penalty.

Six-month cooling-off period

If a reverse mortgage loan is terminated for whatever reason within the first 6 months, a refund and waiver of mortgage insurance premiums will be given. However, the borrower is still required to bear the accrued interest, financed fees (if any) and the relevant fees in relation to the termination of the Reverse Mortgage Loan.

Warning: To borrow or not to borrow? Borrow only if you can repay!

Note:
1. The above information is for reference only and not complete. The programme is subject to relevant terms and conditions. For details, please refer to the Reverse Mortgage Programme materials and offering documents issued by HKMCI.
2. In case of discrepancies between the English and Chinese versions, the English version shall prevail.