Bank of East Asia will serve as a pilot bank in a reverse mortgage program launching in Hong Kong, the company announced today. The program, introduced by the Hong Kong Mortgage Corporation, has begun to accept reverse mortgage applications, following a signing ceremony held by the HKMC.
“We are pleased to announce BEA’s participation in the Reverse Mortgage Programme as a pilot bank,” said Adrian Li, deputy chief executive of the Bank of East Asia. “We fully support the Programme, which provides eligible homeowners with a ready source of additional funds to meet their ongoing financial needs,” he added.
Across Europe and Asia, several countries have recently explored options and have launched programs for reverse mortgages, including Poland earlier this year and Korea, which has seen an increase in reverse mortgage volume in 2011.
The Hong Kong Mortgage Corporation announced in March that it was moving forward with its reverse mortgage program, and provided details of the program at that time. People aged 60 and older are eligible for the program, through which they can draw up to HK$5,100 ($654) per month for each HK$1 million ($128,317) of property value.
Written by Elizabeth Ecker
