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A Study On The Development Of Reverse Mortgage Loan In China

Posted on:2009-08-01Degree:MasterType:Thesis
Country:ChinaCandidate:Y ChenFull Text:PDF
GTID:2189360272990678Subject:Finance
Abstract/Summary:PDF Full Text Request
With the aging and social development, our country is facing an increasingly serious problem with support of old age. In February 2004, Liu Zhifeng, vice minister of the Ministry of Construction, revealed in Hong Kong at the international meeting on housing that in China, the proportion of urban residents' ownership of private houses has risen to more than 80%. However, the majority of the elderly don't lead a well-off life. Most of them are rich in housing while poor in cash. Therefore, the important issue which badly needs to be studied is how the financial innovation can help enable the elderly to get steady incomes and use it as part of social support of old-age by making reasonable use of their own housing without having to move to other places. Reverse mortgage loan is the most successful model of housing equity conversion. It is designed mainly for the elderly who have their home ownerships. In regard of the above case, I have adopted a better mode of operation from foreign countries in an attempt to explore suitable reverse mortgage loan business in our own country.Firstly, the essay defines the connotation of home reverse mortgage loan, its basic characteristics and its process and explains the theoretical basis for carrying it out.Secondly,in order to learn something in this field from foreign countries, the essay makes a comparative analysis of how home reverse mortgage loan business has been working in the countries such as the United States, Canada, Singapore, etc. Furthermore, it provides as much information on the products of this kind in the U.S.A as possible .Then, based on our actual situations, the essay analyzes the necessity and feasibility to carry out the reverse mortgage loan in our country, drawing the conclusion that reverse mortgage loan can be promoted, developed and popularized in China. Meanwhile, the essay also makes an intensive study of the obstacles and risks in carrying out this business and gives suggestions on how to deal with them efficiently.Finally, the essay describes the process on how to carry out reverse mortgage loan in China on the basis of our own national conditions by learning from foreign countries. It suggests that the model of carrying out reverse mortgage loan should be a combination of government regulation and market operation, that commercial banks and insurance companies should be the main loan institutions and that products should be priced in actuarial ways.
Keywords/Search Tags:support of old age, housing, reverse mortgage loan
PDF Full Text Request
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