Policy Reverse Mortgage Programme

Lets You Paint a Colorful Retirement Life

The Policy Reverse Mortgage Programme is operated by HKMC Insurance Limited (HKMCI), a wholly-owned subsidiary of The Hong Kong Mortgage Corporation Limited (HKMC), for people who are aged 55 or above to apply for policy reverse mortgage loans.

Policy reverse mortgage is a loan arrangement. It enables a borrower to use his life insurance policy as collateral to borrow from a lender.

Policy Reverse Mortgage Program
Limited Time Offer *

"Policy Reverse Mortgage"¹ Key Product Features
Eligibility Criteria
Monthly Payment Amount

Flexible payment term

The borrower can choose to receive monthly payouts either over a fixed period of 5, 10, 15 or 20 years or throughout his entire life until the maturity of his life insurance policy. The borrower has the flexibility, at any time during his payment term, to apply to switch to another payment term.

Lump-sum payout

The borrower may apply to borrow lump-sum payouts at the time of policy reverse mortgage loan application and/or at any time during the selected payment term to suit your personal needs. For example:

full repayment of an outstanding policy reverse mortgage loan or an outstanding policy loan on the life insurance policy (only applicable at the time of policy reverse loan application)
settlement of unpaid premium of the life insurance (only applicable at the time of policy reverse loan application)
repayment of the borrower's personal loans (including revolving credit facilities or credit card balances)
payment for home improvement, repairs and maintenance of the property in Hong Kong
payment for medical expenses (treatment outside Hong Kong is acceptable)
payment for fees for setting up an enduring power of attorney
purchase of interment right in columbarium and cemetery, as well as expenses for funeral services
payment for estate planning expenses

No repayment during the borrower's lifetime

In general, the borrower does not need to repay the outstanding loan amount during his lifetime, unless the policy reverse mortgage loan is terminated under specific circumstances.

No penalty for early full repayment

The borrower may fully repay the outstanding loan amount and redeem the life insurance policy at any time without penalty. However, he may not repay only a part of the outstanding loan amount.

Six-month cooling-off period

If the borrower terminates his policy reverse mortgage loan for whatever reason, provided that he notifies the lender within the first six months and repays in full the outstanding loan amount on the proposed repayment date, he will be given a full refund and waiver of the relevant mortgage insurance premiums. However, the borrower still needs to bear any accrued interest and financed fees in the outstanding loan amount.

In general, the higher is the death benefits of the life insurance policy, the higher will be the monthly payout amount. The older the borrower is at the time of loan application and the shorter is the payment term, the higher will also be the amount of the monthly payout.

The mortgage plan the borrower chooses will also affect the amount of monthly payout. In general, the payout amounts offered under a fixed-rate mortgage plan are higher than those under a floating-rate mortgage plan.

In general, the monthly payout amount will remain constant or increase over the payment term, depending on the annual review of the death benefits of the life insurance policy.

Example of monthly payout amount (HK$)

Age of borrower : 65

Gender of borrower : Male

Death benefits of life insurance policy : HK$2 million

Monthly payout amounts²
Payment term	Floating-rate mortgage plan³	Fixed-rate mortgage plan⁴
5-year	$7,786	$8,984
10-year	$5,088	$5,750
15-year	$3,986	$4,426
20-year	$3,516	$3,852
Life	$3,234	$3,498

Mortgage loans will only be offered to customers who meet the eligibility criteria for the Policy Reverse Mortgage Programme set out by HKMCI from time to time. The relevant terms and conditions are subject to the announcement and final approval of HKMCI.
The above monthly payout amounts are based on a specific life insurance policy of a well-known insurance company and are for illustration purpose only. The actual monthly payout amount for individual life insurance policies may vary.
The above monthly payout under the floating-rate mortgage plan is calculated at the interest as at 31 July 2023 (i.e., the Hong Kong Prime Rate minus 2.5% p.a.), and is for reference only. The floating interest rate and the Hong Kong Prime Rate will be determined by the HKMCI and the HKMC from time to time respectively.
The above monthly payout under the fixed-rate mortgage plan is calculated at the interest rate of 4% p.a. for the first 25 years and the Hong Kong Prime Rate minus 2.5% p.a. thereafter, and is for reference only. The fixed interest rate and the Hong Kong Prime Rate will be determined by the HKMCI and the HKMC from time to time respectively.

Please read the Policy Reverse Mortgage Leaflet, an Important Notice the Policy Reverse Mortgage Information Pack carefully and go through them with your family and any persons whom you believe before proceeding further with application for a policy reverse mortgage loan.
The promotion is available to customer who (a) is aged 55 or above and a holder of a valid Hong Kong Identity Card; and (b) is not be an undischarged bankrupt or otherwise subject to bankruptcy petition or individual voluntary arrangement (except if the indebtedness under the relevant individual voluntary arrangement is to be repaid in full at closing by way of lump-sum payout) (the "Eligible Customer"). The Eligible Customer 's life insurance policy must fulfill the requirement: (a) be taken out by the borrower as both the policyholder and the insured; (b) be issued by an authorized insurer in Hong Kong; (c) be denominated in Hong Kong Dollars or United States Dollars; (d) not be associated with any investment features (such as those products regulated by the Securities and Futures Commission of Hong Kong under the Investment Linked Assurance Scheme ); (e) have the premium fully paid up; and (f) be assignable and not contain any restriction on change of beneficiary.
Eligible Customers who have successfully submitted a formal application during the Promotion Period and the loan is approved and drawn are entitled to enjoy HKD 4,000 for the Loan Rebate for Policy reverse mortgage loan. The Loan Rebate for policy reverse mortgage loan is only applicable to Eligible Customers who have fulfilled all the following requirements: - (a) A formal application and the relevant documents must be received by the Bank during the Promotion Period; (b) The application must be successfully approved subsequently; and (c) Within six months from the date of the first monthly or lump-sum payout, (i) no application for refund and waiver of mortgage insurance premiums of the loan has been issued by the customer; and (ii) no maturity event has occurred that would trigger a refund or waiver of mortgage insurance premiums. The Loan Rebate for Policy Reverse mortgage loan will be credited into Eligible Customer's active current or savings account held with the Bank directly within 4 months after the conditions in clause 3 above have been fulfilled.

*Quotas of the offer are available on a first-come-first-served basis while quota lasts. Terms and Conditions apply.

Enquiry Hotline : 3918 6655

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