- Reverse mortgage
- What is a reverse mortgage?
- Who is eligible for a reverse mortgage loan?
- Key features of the reverse mortgage under the Reverse Mortgage Programme
- What costs is the borrower responsible for?
- How much does the borrower receive every month?
- Lump-sum loan
- Assignment of life insurance policy
- When does the reverse mortgage terminate?
- What happens to the property at the end of the reverse mortgage?
- Application procedures
- Public housing issues
- Maintenance and safety of property
- Redevelopment and acquisition of property
In addition to monthly payouts, the borrower may apply to borrow a lump-sum at the time of the initial loan application and/or at any time during the payment term for the following purposes:
- full repayment of the existing mortgage on the borrower’s property;
- major repairsor maintenance on the borrower’s property; or
- medical expenses.
Other purposes not listed above may be considered on a case-by-case basis.
When the borrower applies for a reverse mortgage, the bank will specify in the facility letter the maximum and minimum lump-sum that may be borrowed at the time of application. These maximum and minimum amounts will be reduced during the payment term.
Each time a lump-sumis borrowed, the monthly paymentis reduced.