| Reverse mortgage is a relatively successful trial of new foreign pension tool, it can provide solutions for solving the problems of aging. Reverse mortgage means that after the death of the “property rich, cash poorâ€, the old man used his real estate which still has the value through certain means mortgaged to financial or insurance institutions, which will made the payment of a fixed sum or installment payments from the agency form and a stable cash flow can continue for life, so as the elderly rely on another supplement social security pension outside.According to international practice, in the last century Chongqing has entered the aging period. As the only one municipality in the southwestern region, although the level of economic development is relatively good compared to other cities, but Chongqing current pension system is difficult to deal with the growing aging crisis. We must explore for a new pension model in Chongqing. In Chongqing if we want to achieve reverse mortgage implemented successfully, we must consider the pricing model which contain individual risk factors, and select the main factors, reflected in the pricing model in order to achieve a reasonable pricing.In this paper, we combing scholars of reverse mortgage pricing models found in the literature, the future life expectancy of the elderly, housing values and fluctuations in the benchmark lending interest rate changes are the main factors affecting the reverse mortgage pricing. Articles on traditional pricing model selection and improvement, based on three main factors to build a dynamic pricing model, we using data analysis Chongqing rates when using the annuity payment, assuming that housing cannot be redeemed, analysis in single and double-life situations respectively how were the pricing, and make sensitivity analysis of each pricing factors in the model. It can be found through the pricing results that the older people receive a greater amount of life annuity; older people who involved in the reverse mortgage can get at least 1125 Yuan per month, in terms of living standards in Chongqing, the monthly amount equivalent to 53.53% compare with per capita disposable income in Chongqing. In the sensitivity analysis, we can see a greater sensitivity of the interest rates’ change and housing depreciation rate, and a lower sensitivity of expense ratio; the interest rate changes is much more greater than the depreciation rate. Those results can lend institutions in the development of pricing model.The reverse Mortgage Loans introduced into China was under the situation that trend of aging and old age security system is imperfect serious, and its successful implementation will not only find a way self-pension for the elderly, but also the financial markets product innovation. This paper aims to carry out a reverse mortgage on Chongqing housing practices provide some technical assistance. |
