Reverse mortgage

What happens to the property at the end of the reverse mortgage?

At the end of the reverse mortgage, the borrower (or his inheritor(s) if the borrower has passed away) has the preferential right to redeem the property by repaying the loan in full to the bank.

If the borrower (or his inheritor(s)) chooses not to exercise this right, the bank will sell the property to recover the outstanding loan amount.

If the sale proceeds from the property exceed the outstanding loan amount, the bank will return the surplus to the borrower (or his inheritor(s)) after paying off the outstanding loan in full.

If there is any shortfall, it will be borne by the HKMC under an insurance arrangement between the bank and the HKMC.