Reverse mortgage

How much does the borrower receive every month?

The borrower receives a fixed monthly payment, whose amount depends on:

  1. the term of the annuity payment;
  2. the age of the borrower; and
  3. the value of the property.

For every HK$ 1 million of the property's value, the monthly payment for borrowers at the entry age of 55, 60 or 70 are as follows:

Term of annuity payment

Amount of monthly annuity payment (HK$)

One borrower

55 years old

60 years old

70 years old

10 years

$3,200

$3,700

$5,100

15 years

$2,400

$2,800

$3,800

20 years

$2,050

$2,400

$3,300

Life annuity

$1,650

$2,000

$3,100


Term of annuity payment

Amount of monthly annuity payment (HK$)

Two borrowers

55 years old

60 years old

70 years old

10 years

$2,800

$3,300

$4,600

15 years

$2,150

$2,500

$3,500

20 years

$1,800

$2,100

$3,000

Life annuity

$1,450

$1,800

$2,800


Term of annuity payment

Amount of monthly annuity payment (HK$)

Three borrowers

55 years old

60 years old

70 years old

10 years

$2,500

$3,000

$4,200

15 years

$1,900

$2,250

$3,200

20 years

$1,600

$1,900

$2,700

Life annuity

$1,250

$1,550

$2,400


For other ages, please visit HKMC website to determine the monthly payout.

On 16 November 2012, the maximum property value for payout calculation was increased to HK$15 million. For properties worth over $8 million, a discount is applied in computing the specified property value. For any property valued at HK$25 million or above, the maximum specified property value for payout calculation is capped at HK$15 million.

How to calculatethe monthly annuity payment if one borrower is 60 years old and the co-borrower is 70 years old

When there are two borrowers, the annuity payment will depend on the age of the younger borrower.

Examples

 

Example 1

Example 2

Example 3

Borrower(s) and entry age

One borrower aged 70

Two borrowers, one 70 and
the other 60

Two borrowers, both 70

Payment term

Life

Life

Life

Property value (HK$)

$2.5 million

$2.5 million

$9 million

Monthly payout (HK$)

$3,100 x 2.5 = $7,750

$1,800 x 2.5 =
$4,500

$2,800 x 8 =
$22400


Example 2
When there are two borrowers, the amount of the monthly annuity payment will depend on the age of the younger borrower. The entry age of the younger partner is used for calculation.

Example 3
The property value used for calculation is capped at HK$8 million. Even though the property value in this example is HK$9 million, the monthly payment will be determined as if the property were worth HK$8 million

Click here for the Reverse Mortgage Calculator designed by the HKMC to estimate the amount of mortgage you can get.