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 owned 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 the following purposes:

• 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), 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 ¹
• settlement of land premium payment for subsidised housing property
• payment for home improvement (including works aiming to improve the environmental friendliness of home/housing estate), 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
• payment for estate planning expenses (such as fees on making wills and setting up trusts)
• purchase of interment right in columbarium and cemetery, as well as expenses for funeral services.

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

¹ 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.

² For subsidised sale flats with unpaid land premium, the appraised property value is determined by the open market value minus the land premium amount.

³ Determination of the 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.

⁴ 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 to a borrower who is holding a  Counselling Certificate issued before 1 May 2014.)

⁵ 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. (Note: This is not applicable to a borrower who is holding a Counselling Certificate issued before 1 May 2014.)

$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 

$4,070

$3,630

$3,300

$5,610

$5,060

$4,620

$3,080

$2,750

$2,470

$4,180

$3,850

$3,520

$2,640

$2,310

$2,090

$3,630

$3,300

$2,970

$2,200

$1,980

$1,700

$3,410

$3,080

$2,640

Example 1

Example 2

Example 3

Person aged 70

Husband  aged 70 and wife aged 60

Husband and wife both aged 70

Life

10-year

20-year

$2,500,000

$6,000,000

$45,000,000⁸

$3,100 x 2.5 = $7,750

$3,300 x 6 = $19,800

$3,000 x 25 = $75,000

$3,410 x 2.5 = $8,525

$3,630 x 6 = $21,780

$3,300 x 25 = $82,500

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

To be posted to the outstanding loan amount:

(ii) 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 counselling service.

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

⁹ The borrower may choose to finance the fees in his reverse mortgage loans.

The above costs are not exhaustive and for reference only. Please refer to the Information Pack for further details.

Enquire with a participating institution which will explain details of the programme and conduct a preliminary eligibility assessment. Under any circumstances, there is no need to apply for a reverse mortgage loan through other intermediaries. For the list of participating institutions of the Reverse Mortgage Programme, please click here.

After obtaining the Counselling Certificate, a formal application can be submitted. Meanwhile, the borrower is required to complete a health questionnaire conducted by the HKMCI before closing. After the application is approved, mortgage documents and other related legal documents will be executed.