Reverse mortgage

What is a reverse mortgage?

A reverse mortgage is a loan arrangement between the borrower and the bank. The borrower useshis self-occupied residential property as security to borrow money from a bank. The borrower receives monthly payments over a fixed period to improve his quality of life.

The borrower remains the owner of the home and can continue to stay in his home for the rest of his life.

The borrower does not need to repay his reverse mortgage loan during his lifetime, unless he moves out of his home permanently or the reverse mortgage loan is terminated for other reasons.

Upon the death of the borrower, the estate of the borrower has a preferential right to repay the reverse mortgagewithin a certain period to redeem the property.

The Reverse Mortgage Programme was launched by The Hong Kong Mortgage Corporation Limited (the “HKMC”) to encourage banks to offer reverse mortgages to people 60 years old or above.

The homeowner borrows the money from a participating bank under the Reverse Mortgage Programme.