Reverse Mortgage Programme

Live the Retirement Dream with a Smile

The Reverse Mortgage Programme is operated by HKMC Insurance Limited (HKMCI), a wholly-owned subsidiary of The Hong Kong Mortgage Corporation Limited (HKMC), which enables people aged 55 or above to use their residential properties in Hong Kong as security to obtain reverse mortgage loans.

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

Flexible payment term

Monthly payouts for a fixed period of 10, 15 or 20 years or throughout the borrower's entire life. The older the borrower at the time of formal application and the shorter the payment term, the higher the amount of monthly payout will be.

Lump-sum payout

Lump-sum payouts to suit your personal needs. For example:

  • 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)
  • 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
  • payment for estate planning expenses
  • The maximum amount of lump-sum payout is determined at the time of reverse mortgage loan application and such amount decreases over the payment term. The borrower may apply at any time for lump-sum payouts during the selected payment term. The related available lump-sum payout amount will be determined on a case-by-case basis at the time.

Flexible arrangement to rent out property

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

Lifetime home residence

Property owner is entitled to stay in the property for the rest of his life, even after the payment term (10, 15 or 20 years) is due. However, interest and mortgage insurance premium will be posted to the outstanding loan amount.

No repayment during lifetime

No repayment of outstanding loan amount is required during the borrower's lifetime, unless the reverse mortgage loan is terminated2 under specific circumstances.

No penalty for early repayment of loan

Full repayment of reverse mortgage loan and redemption of mortgaged property can be made at any time without penalty.

Six-month cooling-off period

If a reverse mortgage loan is terminated for whatever reason within the first 6 months, a refund and waiver of mortgage insurance premiums will be given. However, the borrower is still required to bear the accrued interest, financed fees (if any) and the relevant fees in relation to the termination of the reverse mortgage loan.
Joint application for a reverse mortgage loan by up to three borrowers is allowed.
In general, the borrower and the property offered as security must:
The borrower must:
  • be aged 55 or above (aged 60 or above for owners of subsidised sale flat with unpaid land premium) 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).
The property offered as security property must:
  • be a residential property in Hong Kong
  • be held in your own name, or in joint names among you and up to two co-borrowers as joint tenants; or 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 flat imposed by the relevant authority)
  • not be rented out3
To avoid any unnecessary costs or expenditures, individuals who are interested in applying for a reverse mortgage loan should enquire with our bank before taking actions such as changing property ownership.
  1. Mortgage loans will only be offered to customers who meet the eligibility criteria for the 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.
  2. When a reverse mortgage loan is terminated, the property owner (or his personal representative) will have the preferential right to redeem the mortgaged property by repaying in full the outstanding loan amount, otherwise the lender will dispose of the mortgaged property to repay the outstanding loan amount. If there is any shortfall, it will be borne by the HKMCI under an insurance arrangement between the lender and the HKMCI. Any surplus will be passed to the property owner (or his personal representative).
  3. Borrower may apply to rent out the property if the borrower has owned the property for at least one year and all co-borrowers have: (i) declared that they have retired; or (ii) moved out to obtain elderly or medical care. If your property is a subsidised sale flat with unpaid premium, you must obtain a written consent from relevant authorities, in addition to the above requirement of property ownership. The above monthly payout under the floating-rate mortgage plan is calculated at the interest rate 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

To borrow or not to borrow? Borrow only if you can repay!
Don't be tempted by quick money. Don't sell your account.