Reverse Mortgage Lacks Detail, Risks Becoming Banks’ Cash Cow

What’s the worry?

The pilot reverse-mortgage scheme launches next half, but key details — interest rates, premiums — are missing, raising fears it’ll become another profit machine for banks like MPF. HK$1 million of property yields just HK$1,800-2,800 monthly for life; after death the bank sells the flat, deducts everything, and heirs get the remainder.

What should happen?

Publish regulatory arrangements fast and explain how participating banks will be policed — or poor uptake will sink a good idea.