The Hong Kong Mortgage Corporation Limited (HKMC) announced several improvements to its reverse mortgage product this week.
Designed to improve the product for consumers, HKMC said it’s increasing the maximum property value payout from HK$8 million to HK$15 million and is lowering the the minimum age of borrowers from 60 to 55 years old to accommodate early retirees and couples with one spouse who is younger than 60 years old.
Seniors in hong kong will also see their maximum lump sum payout increase from 50% of the actuarial value of the reverse mortgage to 90%.
“We are pleased that the RMP has been well received by the public since its inception in July 2011,” said Peter Pang, Executive Director of the HKMC and Deputy Chief Executive of the Hong Kong Monetary Authority. “With the introduction of the new enhancements later this year, the RMP will better serve the needs of the elderly and allow more elderly people to enjoy the benefits of reverse mortgage and better financial planning.”
Hong Kong released its reverse mortgage program in 2011.