Three enhancements to the Reverse Mortgage Programme will come into effect on November 16, bringing greater flexibility and benefits to both existing and prospective reverse mortgage borrowers, the Mortgage Corporation announced today.
The enhancements include increasing the maximum specified property value for payout calculation from $8 million to $15 million; lowering the minimum age of borrowers from 60 to 55 in response to requests from potential applicants below the age of 60; and, increasing the maximum lump-sum payout amount.
With these improvements to the reverse mortgage product, more people in Hong Kong will become eligible to take out a reverse mortgage, giving them more flexibility in their financial planning after the age of 55.
The banks will inform existing borrowers of the enhancements and the arrangement, should wish to apply for changes to their existing mortgage terms.
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