The Hong Kong Mortgage Corporation (HKMC) has unveiled its latest retirement product, called ‘Policy Reverse Mortgage Programme’ (PRMP).
The PRMP enables buyers to use their life policy as collateral to draw down loans, according to the HKMC, which is fully owned by the Hong Kong government.
Customers can choose to receive monthly pay-outs either over a fixed period of time or throughout their life, and even borrow lump sums.
Need for retirement planning
“The company is committed to promoting the development of [the] retirement planning market,” said Raymond Li, executive director and chief executive of the HKMC.
“In the past few years, we have launched the RMP and the HKMC Annuity Plan, which have collectively helped over 10,000 Hong Kong citizens turn their assets, amounting to more than HK$20bn (£2bn, $2.5bn, €2.3bn), into stable streams of income, so as to support their retirement lives.
“We further introduce the PRMP as another tool available in the market which can provide retirees with immediate, stable and lifelong stream of income.”
The corporation also said that borrowers do not necessarily need to repay the loans throughout their lifetime.
Instead, they can use the amount recovered from their death benefits of the life insurance policy.
