HKMC enhances Reverse Mortgage Programme and launches Green Promotion

On Mon, 09 Mar 2026, HKMC Enhances Reverse Mortgage Programme and Launches Green Promotion

The Hong Kong Mortgage Corporation Limited ("HKMC") has consistently applied the principles of environmental, social and governance ("ESG") in its business operations. It is dedicated to promoting social responsibility and sustainability while adhering to high standards of corporate governance.

To further advance the development of green and sustainable finance, HKMC is introducing two significant initiatives: Enhancements to the Reverse Mortgage Programme ("RMP") and the Green Promotion.

The RMP introduces various enhancement measures, including: A reduction in the interest rate for its fixed-rate mortgage plan to 4% p.a. for the first 30 years. An increase in monthly payout amounts by a maximum of 5% based on the entry age of the borrower. These enhancements are made possible by the successful issuance of 30-year HK$2 billion social bonds in November 2025, which lowered the cost of funds.

The specific interest rate and payout changes before and after enhancement are: Before Enhancement: Interest rate was 4.5% p.a. for the first 30 years, and a payout reduction of 2% p.a. thereafter. After Enhancement: Interest rate is now 4% p.a. for the first 30 years, with payouts adjusted by reducing the rate by 2% p.a. thereafter.

Monthly payout increments vary based on entry age: 55 years old: Payouts increased from HK$1,590 to HK$1,660. 60 years old: Payouts increased from HK$1,930 to HK$2,020. 70 years old: Payouts increased from HK$2,920 to HK$3,070.

The Green Promotion is available from 17 March to 31 December 2026, encouraging the public to apply for the RMP, Mortgage Insurance Programme ("MIP"), and Fixed Rate Mortgage Scheme using a property with a "BEAM Plus" rating. Participants can receive a one-off cash incentive: RMP: HK$3,000 or 0.1% of the specified property value, capped at HK$8,000. MIP: HK$3,000 (for loan amounts below HK$5 million); or HK$5,000 (for loan amounts at or above HK$5 million). Fixed Rate Mortgage Scheme (non-MIP loans): HK$1,000 (for loan amounts below HK$5 million); or HK$3,000 (for loan amounts at or above HK$5 million).

Mr. Colin Pou, Executive Director and Chief Executive Officer of HKMC, expressed that the proceeds from the social bonds issued last year are used to support the RMP, lowering interest rates and increasing monthly payouts for retirees. He emphasized that this initiative promotes the local retirement planning market and contributes to the silver economy, while the Green Promotion encourages the support of green buildings, fostering a green culture and environmental benefits.

For inquiries about the RMP, contact the HKMC Retire 3 Hotline at 2536 0833. Details of the Green Promotion will be available on the HKMC website (www.hkmc.com.hk) from 17 March.

The RMP is operated by HKMC Insurance Limited, a wholly-owned subsidiary of HKMC.

Eligibility Criteria for "BEAM Plus" Rating: New Buildings: Platinum or Gold rating (Provisional or Final) under "BEAM Plus New Buildings". Existing Buildings: Platinum or Gold rating (Final) under "BEAM Plus Existing Buildings (Comprehensive Scheme)". Residential Interiors: Green+ or Green rating under "BEAM Plus Interiors (Residential)". Verification of eligibility is through valid certificates issued by the Hong Kong Green Building Council ("HKGBC").