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12-10-2014, 05:00 PM
An honorable member of the Coffee Shop Has Just Posted the Following:
HONG KONG’S REVERSE MORTGAGE: GOVT GUARANTEES AND PAYS BACK ANY LOAN SHORTFALL?
.node-article .field-name-link-line-above-tags{float: right;}.node-article .field-name-ad-box-in-article {float: left;margin: 15px 15px 10px 0;}.node-article .field-tags{clear: both;} Post date:
11 Oct 2014 - 9:26pm
http://therealsingapore.com/sites/default/files/styles/large/public/field/image/hong_kong_property_buying_a_house.jpg?itok=yYBVxlO s (http://therealsingapore.com/sites/default/files/field/image/hong_kong_property_buying_a_house.jpg)
Hong Kong’s reverse mortgage
Further to our article “Reverse mortgage: Other countries also low take-up?” (http://leongszehian.com/?p=10234) (Oct 5), let’s look at Hong Kong’s reverse mortgage scheme.
According to its web site (http://www.hkmc.com.hk/eng/pcrm/ourbusiness/rm.html)
Govt guarantees loan shortfall?
- “If the sale proceeds from the property exceed the outstanding loan amount owed by borrowers, the bank will return the surplus to them (or their inheritors) after paying off such outstanding loan amount in full. However, if there is any shortfall, borrowers (or their inheritors) need not worry as the shortfall will be borne by the HKMC under an insurance arrangement between the bank and the HKMC.”
Govt does not profit?
- So, unlike our HDB Lease Buyback Scheme, the Hong Kong Government not only does not make any money, but guarantees any shortfall between the home’s market value and the loan, at the time of sale or death.
Stay lifetime?
Moreover, one gets to live in the home for life, instead of our 30 year lease.
S Y Lee and Leong Sze Hian
P.S. Come with your family and friends to the 5th Return Our CPF protest on 25 October 4 pm at Speakers’ Corner https://www.facebook.com/events/446619505476438/
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?191821-Hong-kong’s-reverse-mortgage-Govt-guarantees-and-pays-back-any-loan-shortfall&goto=newpost).
HONG KONG’S REVERSE MORTGAGE: GOVT GUARANTEES AND PAYS BACK ANY LOAN SHORTFALL?
.node-article .field-name-link-line-above-tags{float: right;}.node-article .field-name-ad-box-in-article {float: left;margin: 15px 15px 10px 0;}.node-article .field-tags{clear: both;} Post date:
11 Oct 2014 - 9:26pm
http://therealsingapore.com/sites/default/files/styles/large/public/field/image/hong_kong_property_buying_a_house.jpg?itok=yYBVxlO s (http://therealsingapore.com/sites/default/files/field/image/hong_kong_property_buying_a_house.jpg)
Hong Kong’s reverse mortgage
Further to our article “Reverse mortgage: Other countries also low take-up?” (http://leongszehian.com/?p=10234) (Oct 5), let’s look at Hong Kong’s reverse mortgage scheme.
According to its web site (http://www.hkmc.com.hk/eng/pcrm/ourbusiness/rm.html)
Govt guarantees loan shortfall?
- “If the sale proceeds from the property exceed the outstanding loan amount owed by borrowers, the bank will return the surplus to them (or their inheritors) after paying off such outstanding loan amount in full. However, if there is any shortfall, borrowers (or their inheritors) need not worry as the shortfall will be borne by the HKMC under an insurance arrangement between the bank and the HKMC.”
Govt does not profit?
- So, unlike our HDB Lease Buyback Scheme, the Hong Kong Government not only does not make any money, but guarantees any shortfall between the home’s market value and the loan, at the time of sale or death.
Stay lifetime?
Moreover, one gets to live in the home for life, instead of our 30 year lease.
S Y Lee and Leong Sze Hian
P.S. Come with your family and friends to the 5th Return Our CPF protest on 25 October 4 pm at Speakers’ Corner https://www.facebook.com/events/446619505476438/
Click here to view the whole thread at www.sammyboy.com (http://sammyboy.com/showthread.php?191821-Hong-kong’s-reverse-mortgage-Govt-guarantees-and-pays-back-any-loan-shortfall&goto=newpost).