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The Reverse Mortgage Agreement is a specialized financial instrument designed for Hong Kong property owners aged 55 or above who wish to monetize their property while continuing to live in it. This document is essential when implementing HKMC's Reverse Mortgage Programme, which was introduced to provide financial flexibility to elderly homeowners. The agreement covers crucial aspects including loan disbursement methods, interest calculations, property maintenance requirements, termination conditions, and the rights and obligations of all parties involved. It must comply with Hong Kong banking regulations, property laws, and HKMC guidelines, while incorporating specific protections for elderly borrowers. The document is typically used when a property owner seeks to receive regular monthly payments or a lump sum against their property's value, with the loan being secured by a mortgage over the property.

1. Parties: Identifies the lender (typically HKMC-approved bank) and borrower(s), including their full legal names and addresses

2. Background: Explains the nature of a reverse mortgage, confirms the borrower's ownership of the property, and states the purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement, including technical financial terms and property-related terminology

4. Property Details: Detailed description of the mortgaged property, including address, lot number, and registration details

5. Loan Terms: Specifies the loan amount, payment structure (lump sum or monthly payments), and interest calculation method

6. Security and Charges: Details of the mortgage security, registration requirements, and any associated charges

7. Borrower's Representations and Warranties: Borrower's confirmations regarding property ownership, capacity, and understanding of the agreement

8. Borrower's Obligations: Ongoing obligations including property maintenance, insurance, payment of rates and management fees

9. Events of Default: Circumstances constituting default, including failure to maintain the property or breach of obligations

10. Termination Events: Events triggering loan termination, including death, permanent move-out, or sale of property

11. Repayment Provisions: Conditions and procedures for loan repayment, including early repayment options

12. Property Valuation: Procedures for initial and ongoing property valuations

13. Insurance Requirements: Mandatory insurance coverage for the property

14. General Provisions: Standard clauses including notices, amendments, governing law, and jurisdiction