Reverse Mortgage Programme
Live the Retirement Dream with a Smile
The Reverse Mortgage Programme is operated by HKMC Insurance Limited (HKMCI), a wholly-owned subsidiary of The Hong Kong Mortgage Corporation Limited (HKMC), which enables people aged 55 or above to use their residential properties in Hong Kong as security to obtain reverse mortgage loans.
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 to suit your personal needs. For example:
- refinancing of an existing reverse mortgage or full repayment of the existing mortgage of the borrower's property to be offered as security (not applicable to the property owned by a limited company) at the time of reverse mortgage loan application
- repayment of the borrower's other mortgage loans or personal loans (including revolving credit facilities or credit card balances)
- settlement of land premium payment for subsidised housing property
- payment for home improvement, repairs and maintenance of the property
- 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
Flexible arrangement to rent out property
Mortgaged property can be rented out under specific circumstances for a higher income.
Lifetime home residence
No repayment during lifetime
No repayment of outstanding loan amount is required during the borrower's lifetime, unless the reverse mortgage loan is terminated2 under specific circumstances.
No penalty for early repayment of loan
Six-month cooling-off period
- Mortgage loans will only be offered to customers who meet the eligibility criteria for the 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.
- When a reverse mortgage loan is terminated, the property owner (or his personal representative) will have the preferential right to redeem the mortgaged property by repaying in full the outstanding loan amount, otherwise the lender will dispose of the mortgaged property to repay the outstanding loan amount. If there is any shortfall, it will be borne by the HKMCI under an insurance arrangement between the lender and the HKMCI. Any surplus will be passed to the property owner (or his personal representative).
- Borrower may apply to rent out the property if the borrower has owned the property for at least one year and all co-borrowers have: (i) declared that they have retired; or (ii) moved out to obtain elderly or medical care. If your property is a subsidised sale flat with unpaid premium, you must obtain a written consent from relevant authorities, in addition to the above requirement of property ownership.
- The above monthly payout under the floating-rate mortgage plan is calculated at the interest rate 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.
Application Reward1 (From January 2, 2024 until June 30, 2024, inclusive of both dates)
- Eligible customers2 who have successfully submitted a formal application together with relevant documents during the promotion period are entitled to enjoy HKD3,000 Application Reward.
Loan Rebate3,4 (From January 2, 2024 until June 30, 2024, inclusive of both dates)
- Eligible customers2 who have successfully submitted a formal application during the Promotion Period and the loan is approved and drawn are entitled to enjoy HKD7,000 Loan Rebate.
- Eligible Customers who have successfully completed the counselling session with an eligible Reverse Mortgage Counsellor, and obtained the counselling certificate, as well as submitted a formal Reverse Mortgage Loan application together with relevant documents to the Bank during the Promotion Period are entitled to enjoy HKD3,000 Application Reward. The Application Reward will be credited into Eligible Customer's active current or savings account held with China Construction Bank (Asia) Corporation Limited (the "Bank") directly within 3 months after the formal submission of the Reverse Mortgage Loan application and its relevant documents.
- The Promotion is available to customer who (a) is aged 55 or above (or aged 60 or above for owners of subsidised sale flats with unpaid land premium) 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").
- 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 7,000 for the Loan Rebate for reverse mortgage loan. The Loan Rebate for 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 reverse mortgage loan will be credited into Eligible Customer's active current or savings account held with the Bank directly within 3 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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