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    Democratic and Reform Resources Centre, Powered by Joomla!
    17 Dec 2010 列印 E-mail

    Category

       Elderly Policy

    Issue

    • Reverse Mortgage Scheme

    News Content

    • The Hong Kong Mortgage Corp announced yesterday that it is to launch a reverse mortgage pilot next year. Under the scheme, the elderly is allowed to use their non-mortgaged homes as collateral to receive monthly payments till their death.
    • It said eligible borrowers can choose to receive monthly annuity payment over a fixed period of 10, 15, or 20 years or over their lifespan. For example, an eligible 60-year-old property owner could receive HK$1,800 a month based on a home valued at HK$1 million.
    • HKMC refused to reveal the premium that borrowers would have to pay, saying it would refer to other markets to establish the level.

    Questions

    • It is hard to say Hong Kong’s older generation will be benefited from the proposed scheme given the tiny monthly payment they may get.
    • Without giving the details of the scheme, such as the premium and the interest rate, it is yet to see if the scheme will serve the elderly best.