The Research Of Reverse Mortgages Model In China

Since China entered the aging society, the aging, high old age and empty nest social situation become more and more serious. In the single child policy, the size of families shrink and the children face up against heavy economic burden, so the families appear limited pension. Besides The social security system have some situations like narrow social security coverage, small number of insurance etc, so The social security institutions can no longer provide a higher level of pension income for elderly neither. These social situations urgently need more additional ways to solve the problem of old age. Reverse mortgage is a financial innovation which can be used to effectively increase the cash income of the elderly in their twilight years to improve their life quality. In the context of old-age prominent problem, using the mature models which drawing on the successful experience of foreign countries, to explore and popularize new Reverse Mortgage which has Chinese characteristics is of great significance to mitigate the great pressure on China's social pension.In this article, Firstly, make a brief description about the meaning of the Reverse mortgage, compare the similarities and differences between Reverse mortgage and traditional mortgage. Meanwhile do another comparative analysis of the ongoing international Reverse mortgage products for the successful experience which our Reverse mortgage model choice and product design may based on.Secondly, from the situation of aging, social security and other aspects ,this article reveals the urgency of carrying out the Reverse mortgage and then through theoretical analysis of the data from the housing property, financial markets, the real estate market, laws and other aspects , author carry out the feasibility study of the loan and have a conclusion:Reverse Mortgage come in our implementation is feasible. Thirdly, in the context of china actual conditions, article analyze the detail process of Reverse Mortgage carry on in China, including the role of government, lending institutions choose, participate institutions choose etc.Finally, article make the analysis of major risks and obstacles which Reverse mortgage will be faced up in the product design, operate and promote process and in the end corresponding exact policy recommendations to solve the risks and obstacles.