Research On The Operating Mode Of Reverse Mortgaga Loan In Our Country

At present, the more deepening aging of our population, the more proportion of the elderly in each family, people’s living quality is also reducing. Generally, aging problem occurs when or after a country is rich enough, however it’s not for China. In fact China is obsessed by aging problem in advance, in other words, it’s getting old before getting rich. So supporting the elderly is becoming a major issue that our country faces. Thus, how to solve the pension problems of the elder and keep their quality of life is an urgent issue that needs our government and the whole society to pay attention. Though limited China’s economic strength, the increasing rate of homeownership enables the elder to enjoy the twilight of life with the assets owned by themselves, but unlike other current assets, the houses are real estate assets with extremely low liquidity, which can’t pay for living of the elder. The existence of reverse mortgage lending model can solve this problem.Reverse mortgage loans is a financial innovation which is still in the preliminary stages in China. Although many countries have much introduction and practical experience about it, it won’t succeed that applying foreign products in China directly due to different national conditions. The current research of many domestic scholars stress more on the introduction of housing reverse mortgages, foreign business practices and our business necessity. This paper introduces the domestic business failure in practice and summarizes the experience. From our country’s specific conditions to illustrate the feasibility of housing reverse mortgages in our country, and then design the business process. The first chapter describes the significance and background of this topic and makes a conclusion of correlation research from home and broad, thus presents the mentality, methods, the flaw and innovation of the paper. The second chapter describes the concept and features of reverse mortgage housing, introduces the successful business model of foreign countries, these developed countries are United States, Canada, Singapore, Japan and the UK. The third chapter describes the situation of the implementation in Shanghai, Nanjing, Beijing, Harbin of China’s major cities have carried out housing reverse mortgages, thus summed up the reasons for the failure, analyzes its feasibility in China. The fourth chapter designs a plan for China to carry out reverse mortgage business operational processes. The fifth chapter comes up with the corresponding policy recommendations in order to get recognized and launch reverse mortgage successfully. Through the research in this paper, we hope to obtain a new way to obtain pension and to enhance our country’s pension system.