The Reverse Mortgage Programme1 is launched by The Hong Kong Mortgage Corporation Limited and aimed for property owners who are aged 55 or above (or aged 60 or above for subsidised sale flats with unpaid land premium).

Reverse mortgage enables a borrower to use his residential property (or more than one property) in Hong Kong as security to borrow from a lender. Although the borrower mortgages his property in favour of the lender, he remains as the owner of the property and can continue to stay in the property for the rest of his life.

Flexible payment term

The borrower can choose to receive monthly payouts for a fixed period of 10, 15 or 20 years or throughout his entire life.

Lump-sum payout

In addition to monthly payouts, borrower may also apply to borrow lump-sum payouts for specific purposes such as full repayment of an existing mortgage, payment for major repair and maintenance of property, medical expenses, the fees payable to the relevant solicitors and medical practitioners in connection with the enduring power of attorney or application for a court order under Part II of the Mental Health Ordinance, purchase of interment right in columbarium and cemetery, as well as expenses for funeral services.

Residing in the property

After taking out a reverse mortgage loan, the borrower is still entitled to continue to stay in the property for the rest of his life.

No repayment during the borrower's lifetime

The borrower does not need to repay the outstanding loan amount he owes to the lender during his lifetime, unless the reverse mortgage loan is terminated under certain specified circumstances.

No penalty for early full repayment

The borrower may fully repay the outstanding loan amount and redeem the property at any time and there is no penalty for such full repayment.

Six-month cancellation period

If the borrower wishes to terminate the reverse mortgage loan for whatever reason, provided that he notifies the lender within the first six (6) months and repays in full the outstanding loan amount on the proposed repayment date, he will be given a refund and waiver of all mortgage insurance premiums.

Please contact OCBC Wing Hang Bank Limited (“Bank”) for details.

Reminder: “To borrow or not to borrow? Borrow only if you can repay!”