What are the hidden dangers of Hong Kong's mortgage payments after the age of 70?

According to Mark Humphrey, the head of MHC Mortgages, most lending institutions can provide mortgage loans up to the age of 75, which can be approved through simple qualification checks; A few institutions can extend the loan term to 80 years old based on income proof. There are many hidden concerns behind seemingly loose policies, which need to be recognized and addressed in advance.

The core concern is the decline in repayment ability in old age and falling into financial difficulties. After the age of 70, most people retire and rely solely on their pension for income, which is limited in amount and has no room for growth. Mortgage payments are rigid expenditures, and once the pension cannot cover monthly payments, they may be interrupted. The repayment ability verification of loan institutions is based on current income, making it difficult to predict variables such as sudden illnesses in later years and increased pension expenses. In addition, some long-term loans require children as co borrowers, which can easily transfer pressure to the next generation, exacerbate family burden, and even cause conflicts.

Secondly, there are sudden health risks and the inability to bear the dual pressure. After the age of 70, physical function declines and the risk of illness increases. High medical and nursing expenses, combined with mortgage payments, can easily put families in dire straits. Medical expenses may deplete savings, and the nursing expenses after losing self-care ability will further weaken repayment ability. Loan institutions often do not focus on assessing health risks in later life, and such hidden dangers are easily overlooked.

Furthermore, policy changes and market fluctuations exacerbate repayment uncertainty. The long term of mortgage loans, future policy adjustments such as mortgage interest rates and property taxes, or the decline in housing prices leading to "insolvency", will bring additional pressure to retired elderly people. If the repayment cannot be made on time, after the bank disposes of the property, the owner may still bear the remaining debt, and the policy of relaxing loan terms may also be tightened, further increasing the repayment pressure.

Another risk that is easily overlooked is the risk of property inheritance and debt disputes. When the mortgage is not fully repaid, the property is in a mortgaged state and cannot be freely inherited. If the buyer passes away midway, the remaining debt will be borne by the heir, and if unable to repay, the property will be disposed of by the bank; Even if it can be repaid, it may still trigger internal disputes within the family. In addition, the practice of using parents' names to purchase houses to circumvent policies may also pose legal risks.

Finally, the quality of life has declined and the quality of elderly care cannot be guaranteed. At the age of 70, one should enjoy a peaceful old age, but the pressure of mortgage will force the elderly to reduce expenses, and even work part-time to support their family in their later years. The tolerance rate is extremely low, and any unexpected situation may lead to a significant decline in their quality of life.