Housing Reverse Mortgage Pricing Analysis

As an innovative way to provide old-age care for the elderly,housing reverse mortgages can effectively alleviate the problem of China’s pensions and fill the existing pension insurance system.Liaoning Province is prominent in the problem of population aging,and labor outflow is also serious.At present,the number of elderly people is gradually increasing,and the pressure for payment of pension funds is relatively high.Therefore,the Dalian Original Insurance Supervision Bureau decided to introduce the housing reverse mortgage model into Dalian,and announced the relevant notice in August 2016.On this basis,this paper first analyzes the necessity of implementing "house-to-house pension" in Dalian,and then carries out an empirical analysis on the pricing of the issue loan.Considering the three factors of loan interest rate,house value and life expectancy,no Redemption of reverse mortgage pricing model.Establish a model of interest rate volatility and then simulate the dynamics of China’s housing price fluctuations.Then Monte Carlo simulation method was proposed to analyze the difference in pricing results between male and female borrowers,and to analyze the sensitivity of male and female recipients to interest rate changes,depreciation rate changes and rate changes.The empirical results show that the amount that the borrower can obtain is inversely proportional to the age of the application and is proportional to the value of the house;the pricing result of the male borrower is more sensitive to the change of the depreciation rate of the house,and the change of interest rate and rate is obvious;the female borrower The pricing results are more sensitive to changes in interest rates and depreciation rates and are not sensitive to rate changes.