Policy Reverse Mortgage Programme

Lets You Paint a Colorful Retirement Life

The Policy Reverse Mortgage Programme is operated by HKMC Insurance Limited (HKMCI), a wholly-owned subsidiary of The Hong Kong Mortgage Corporation Limited (HKMC), for people who are aged 55 or above to apply for policy reverse mortgage loans.

Policy reverse mortgage is a loan arrangement. It enables a borrower to use his life insurance policy as collateral to borrow from a lender.

  • "Policy Reverse Mortgage"1 Key Product Features
  • Eligibility Criteria

Flexible payment term

The borrower can choose to receive monthly payouts either over a fixed period of 5, 10, 15 or 20 years or throughout his entire life until the maturity of his life insurance policy. The borrower has the flexibility, at any time during his payment term, to apply to switch to another payment term.

Lump-sum payout

The borrower may apply to borrow lump-sum payouts at the time of policy reverse mortgage loan application and/or at any time during the selected payment term to suit your personal needs. For example:

  • full repayment of an outstanding policy reverse mortgage loan or an outstanding policy loan on the life insurance policy (only applicable at the time of policy reverse loan application)
  • settlement of unpaid premium of the life insurance (only applicable at the time of policy reverse loan application)
  • repayment of the borrower's personal loans (including revolving credit facilities or credit card balances)
  • payment for home improvement, repairs and maintenance of the property in Hong Kong
  • 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
  • The borrower can contact the participating institution to find out the maximum amount of lump-sum payout that he can borrow, from time to time, under his policy reverse mortgage loan. The maximum amount of lump-sum payout is determined at the time of initial loan application and such amount decreases over the payment term.

No repayment during the borrower's lifetime

In general, the borrower does not need to repay the outstanding loan amount during his lifetime, unless the policy reverse mortgage loan is terminated under specific circumstances.

No penalty for early full repayment

The borrower may fully repay the outstanding loan amount and redeem the life insurance policy at any time without penalty. However, he may not repay only a part of the outstanding loan amount.

Six-month cooling-off period

If the borrower terminates his policy reverse mortgage loan for whatever reason, provided that he notifies the lender within the first six months and repays in full the outstanding loan amount on the proposed repayment date, he will be given a full refund and waiver of the relevant mortgage insurance premiums. However, the borrower still needs to bear any accrued interest and financed fees in the outstanding loan amount.
Applicant must be:
  • be aged 55 or above and a holder of valid Hong Kong Identity Card
  • 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)
Your life insurance policy must:
  • be taken out by you as both the policyholder and the insured
  • be issued by an authorized insurer in Hong Kong
  • be denominated in Hong Kong Dollars or United States Dollars
  • not be associated with any investment features (such as those products regulated by the Securities and Futures Commission of Hong Kong under the Investment Linked Assurance Scheme)
  • have the premium fully paid up
  • be assignable and not contain any restriction on change of beneficiary
  1. Mortgage loans will only be offered to customers who meet the eligibility criteria for the Policy 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. The above monthly payout amounts are based on a specific life insurance policy of a well-known insurance company and are for illustration purpose only. The actual monthly payout amount for individual life insurance policies may vary. The above monthly payout under the floating-rate mortgage plan is calculated at the interest as at 30 April 2024 (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 4.5% 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.




Enquiry Hotline : 3918 6655

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