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Reverse Mortgage Calculator

IMPORTANT: The information contained in the Payout Levels generated by the calculator is for reference and illustration purposes only and should not be relied upon as an accurate indication of the actual amounts of Monthly Payouts. All figures set out in the Payout Levels are estimates. Neither the Lender nor The Hong Kong Mortgage Corporation Limited (HKMC) makes any representation or warranty whatsoever as regards the information set out in the Payout Levels and shall have no responsibility for its contents.


The Payout Levels does not constitute an offer from the Lender to the borrower for a reverse mortgage loan. Any application for a reverse mortgage loan is subject to the approval by the Lender at its sole discretion.




HK$
$$$$
HK$
HK$ 0
Interest is calculated on the Outstanding Loan Balance on a monthly compound basis at Hong Kong Prime Rate4 minus 2.5% per annum, which is currently 2.75% per annum (Note: Hong Kong Prime Rate is quoted by the HKMC and is subject to change from time to time)
Lump-Sum Payout5:
Maximum amount6:
HK$ 0.00
Minimum amount6:
HK$ 100,000.00
HK$
(optional)


For further details about the Reverse Mortgage Programme, please contact any participating bank or the HKMC.


Notes:

  1. Appraised Property Value (a) means the value of the Property pursuant to the preliminary valuation conducted by the HKMC and (b) if there is more than one Property mortgaged or to be mortgaged as security for a reverse mortgage loan, means the aggregate value of the Properties, subject to any adjustment the HKMC may make at its sole discretion. If the Property is a subsidised sale flat with unpaid premium under a Designated Housing Scheme, the Appraised Property Value is subject to the following restrictions imposed on an owner of the Property, after taking into account of the applicable Discount Rate:
  2. (a) the obligation to resell the Property to the Hong Kong Housing Authority or its nominee pursuant to the Housing Ordinance or the grantee of the Government Grant pursuant to the Government Grant (as the case may be); and


    (b) the obligation to pay premium to the Hong Kong Housing Authority or the grantee of the Government Grant (as the case may be) before or upon disposal of the Property.


  3. Specified Property Value means a figure in multiples of HK$10,000 which, by default, equals to the Appraised Property Value (or if the Appraised Property value exceeds HK$8 million, the relevant maximum amount of Specified Property Value as shown in the Table 1 below; or, for the refinancing of an existing reverse mortgage loan, the relevant maximum amount of Specified Property Value as shown in Table 2 below), or any lower amount chosen or accepted by you.


Table 1
Appraised Property ValueMaximum amount of Specified Property Value
HK$8 million or below100% of Appraised Property Value
Above HK$8 million and up to HK$12 millionHigher of 80% of Appraised Property Value and HK$8 million
Above HK$12 million and up to HK$16 millionHigher of 70% of Appraised Property Value and HK$9.6 million
Above HK$16 millionHigher of 60% of Appraised Property Value and HK$11.2 million (capped at HK$15 million)

Table 2
Appraised Property ValueMaximum amount of Specified Property Value
HK$12 million or below80% of Appraised Property Value
Above HK$12 million and up to HK$16 millionHigher of 70% of Appraised Property Value and HK$9.6 million
Above HK$16 millionHigher of 60% of Appraised Property Value and HK$11.2 million (capped at HK$15 million)


  1. Cash Surrender Value at Application means, in relation to a Life Policy and for the purpose of calculating the levels of the Monthly Payouts, the Lump-Sum Payouts and the Upfront Mortgage Insurance Premium, the cash surrender value (CSV) as the HKMC may at its absolute discretion determine by reference to the latest Life Policy Documents and/or such other information made available by the Insurance Company and shall be capped at the Specified Property Value, and if there is more than one Life Policy, CSV at Application shall mean the aggregate amount of the CSV under each of the Life Policy so determined by the HKMC in the above manner (without applying a cap) and shall be capped at the Specified Property Value.
  2. Hong Kong Prime Rate means the interest rate in respect of the Hong Kong Dollar from time to time announced by the HKMC, being the arithmetic mean of the prime rate quoted by 12 reference banks specified by the HKMC from time to time, eliminating the highest prime rate (or, in the event of equality, one of the highest) and the lowest prime rate (or, in the event of equality, one of the lowest) and rounded to the nearest 2 decimal places (i.e. 0.01%).
  3. Lump-Sum Payout is the lump-sum amount which you may borrow at first drawdown or at any time during the Payment Term for specific purposes (such as repayment of an existing mortgage immediately before first drawdown, payment for medical expenses or home improvement, repairs or maintenance of the property, fees payable to the relevant solicitors and medical practitioners in connection with the enduring power of attorney (EPA), the fees in connection with the application for a court order under Part II of Mental Health Ordinance (Court Order), repayment of outstanding policy loan of Life Policy or payment of any unpaid premium (whether due or not) of Life Policy). Each time you borrow a Lump-Sum Payout, the amount of all subsequent Monthly Payouts will be reduced. If you request for and are granted the then maximum amount of Lump-Sum Payout whether at first drawdown or from time to time thereafter, you will not receive any Monthly Payout.
  4. The maximum and minimum amounts of Lump-Sum Payout at first drawdown will be reduced during the Payment Term. The maximum amount is calculated by the HKMC by reference to a number of factors including the Specified Property Value, the Cash Surrender Value at Application (where applicable), the Payment Term, your age and the aggregate amount of Monthly / Lump-Sum Payouts you have received. The minimum amount is set at HK$100,000 or 15% of the then applicable maximum amount of Lump-Sum Payout, whichever is the higher amount. Such minimum amount requirement is not applicable to the payment of fees relating to EPA / Court Order.
  5. The Payout Levels is prepared on the assumptions that (a) there is no interest rate change; (b) there is no Lump-Sum Payout other than the one at first drawdown (if any); and (c) no other fees and expenses (such as counselling fee, building inspection fee and legal fee), which may be posted to the Outstanding Loan Balance, is posted to the Outstanding Loan Balance.
Remarks:

  1. Monthly Mortgage Insurance Premium is charged on monthly basis at 1.25% per annum on the Outstanding Loan Balance. You are required to reimburse the Lender for the Monthly Mortgage Insurance Premium payable by the Lender to the HKMC under the relevant mortgage insurance arrangement, and each such reimbursement amount will be posted to the Outstanding Loan Balance.
  2. Upfront Mortgage Insurance Premium is charged at the flat rate of 1.96% on the Specified Property Value and the Cash Surrender Value at Application (where applicable). You are required to reimburse the Lender for the Upfront Mortgage Insurance Premium payable by the Lender to the HKMC under the relevant mortgage insurance arrangement by 7 equal annual instalments (each calculated at the flat rate of 0.28% on the Specified Property Value and Cash Surrender Value at Application (where applicable)) and each such reimbursement amount will be posted to the Outstanding Loan Balance starting from the 4th anniversary of the reverse mortgage loan.