Institutional Affiliation: First State Super and CEPAR, University of New South Wales
NBER Working Papers and Publications
|January 2019||Is There a Demand for Reverse Mortgages in China? Evidence from Two Online Surveys|
with Katja Hanewald, Hazel Bateman, Hanming Fang: w25491
Reverse mortgages provide an alternative source of retirement funding by allowing older homeowners to borrow against their home. However, a recent pilot program of reserve mortgage products in several large Chinese cities saw almost no take up. To ascertain the demand for reverse mortgages in China, we conduct and analyze two online surveys that focus respectively on homeowners aged 45-65 as potential purchasers, and on adult children in the 20-49 age group representing children of potential purchasers. We address the reported shortcomings of the pilot reverse mortgage product by testing an improved product design presented in a clear and comprehensive format. In stark contrast, we find that 89% of older Chinese homeowners would be interested in this new reverse mortgage product, and 84% o...