Consultants will be hired to study whether it is feasible for elderly people to live comfortably by selling their homes to banks, according to a government adviser.
Under the so-called reverse mortgage, home-owners could hand over the deeds of their property to a bank, which would make monthly payments until the home-owner died. The bank would then take possession of the property.
Elderly Commission chairman Tam Yiu-chung, an Executive Councillor, said the introduction of reverse mortgages would give elderly people a fixed income and allow them to retain their homes.
Reverse mortgages have long been available in Britain and North America.
Mr Tam said the commission had been briefed by Canadian consultants on the experience gleaned in Canada and other Western countries.
Officials would now invite consultants to conduct further research on the possibility of introducing such a plan here. No timetable had been set for completion of the study.
But commission member and non-affiliated legislator Bernard Charnwut Chan expressed reservations. He said people in expensive flats usually had a good income and would not need to sell their homes.
