The Hong Kong Mortgage Corporation Limited

• be 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
• 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).

• be a residential property in Hong Kong (property acquired by deed of gift may be considered);
• be owned by:

(i) the borrower as sole and beneficial owner or as joint tenants (if there is more than one borrower); or

(ii) a limited company, incorporated in Hong Kong, wholly and directly held by the borrower (or if there is more than one borrower, all borrowers);

• not exceed 50 years of age (otherwise  it  will be considered on a case-by-case basis);
• not be subject to any resale restrictions (except for the alienation restriction of subsidised sale flats imposed by the relevant authority provided written consent from the relevant authority is obtained); and
• not be rented out. 

(The borrower may apply to rent out the mortgaged property if it has been owned for at least one year and all the borrowers have:

(i) declared that they have retired; or

(ii) moved out to obtain elderly or medical care.

If the property is a subsidised sale flat with unpaid land premium, the borrower must obtain consent from the relevant authority, in addition to the above requirement of property ownership.)

Lump-sum payouts for specific purposes such as

• refinancing of an existing reverse mortgage or full repayment of the existing mortgage of the borrower’s property (not applicable to the property owned by a limited company) at the time of reverse mortgage loan application
• repayment of the borrower's personal loans (including revolving credit facilities or credit card balances), which are originated by an authorized institution carrying on banking business under the Banking Ordinance, an authorized insurer carrying on insurance business under the Insurance Ordinance or a licensed money lender under the Money Lenders Ordinance*
• 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.

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

 *Relevant loans must be made at least 12 months before the application date of lump-sum payout.  However,  

this requirement is not applicable to revolving credit facilities or credit card balances.

^@ For subsidised sale flats with unpaid land premium, the appraised property value is determined by the open market value minus the land premium amount.

^# Determination of maximum amount of specified property value is subject to the aggregate amount of appraised property value in case of more than one property as security under a reverse mortgage loan.

^ For refinancing property, the maximum amount of the specified property value for payout calculation will be 80% of the appraised property value.  (Note: This is not applicable for refinancing of any reverse mortgage loan subsisting as at 30 April 2014 or with counselling certificate issued on or before 30 April 2014.)

^&For refinancing property, the maximum amount of the specified property value for payout calculation will be determined on the basis set out above or 80% of the appraised property value, whichever is lower.

$3,700

$3,300

$3,000

$5,100

$4,600

$4,200

$2,800

$2,500

$2,250

$3,800

$3,500

$3,200

$2,400

$2,100

$1,900

$3,300

$3,000

$2,700

$2,000

$1,800

$1,550

$3,100

$2,800

$2,400 

$4,360

$3,890

$3,540

$6,010

$5,420

$4,950

$3,300

$2,950

$2,650

$4,480

$4,130

$3,770

$2,830

$2,470

$2,240

$3,890

$3,540

$3,180

$2,360

$2,120

$1,820

$3,650

$3,300

$2,830

Example 1

Example 2

Example 3

Person aged 70

Husband  aged 70 and wife age 60

Husband and wife both aged 70

Life

10-year

20-year

$2,500,000

$6,000,000

$45,000,000^Ω

$3,100 x 2.5 = $7,750

$3,300 x 6 = $19,800

$3,000 x 25 = $75,000

$3,650 x 2.5 = $9,125

$3,890 x 6 = $23,340

$3,540 x 25 = $88,500

To be charged on the outstanding loan amount on a compound basis.

To be debited to the outstanding loan amount:

b. Monthly Mortgage Insurance Premium is payable on a monthly basis at the annual rate of 1.25% of the outstanding loan amount.

To be paid to the counsellor for the counselling service.

To be paid to the solicitors for execution of mortgage documents and other relevant legal documents.

Enquire with a bank which will explain details of the Reverse Mortgage Programme and conduct a preliminary eligibility assessment. Under any circumstance, there is no need to apply for a reverse mortgage loan through other intermediaries (except banks).

After obtaining the Counselling Certificate, a formal application can be submitted. 

Once a formal application is approved, mortgage documents and other related legal documents can be executed.