Banks join Reverse Mortgage Programme

The programme will provide additional financial planning option for the elderly.

A news.gov.hk report said seven banks have joined the Mortgage Corporation’s Reverse Mortgage Programme. The interest rate to be charged by banks on the loans will be the Hong Kong Prime Rate minus 2.5% per annum.

According to the report, Wing Lung Bank, the Bank of China (Hong Kong), Nanyang Commercial Bank and the Bank of East Asia have started offering reverse mortgage loans while the Bank of Communications Hong Kong Branch, the Standard Chartered Bank (Hong Kong) and Wing Hang Bank will be introducing the product soon.

View the full report here.