Innovation of Finance: The Application of Reverse Mortgage in China

摘要

China is now confronting the drastically emerging aging problem, which will greatly influence not only China to keep a healthful steady and sustainable development but also stability of the society. Among all of the ways of dealing with this problem, reverse mortgage won the greatest reputation, which is designed to cater the need of elder civilians. Reverse mortgage is a financial product which is intended for the elderly homeowners to improve the quality of their lives. Without the interruption to the operation of house consumption, the estate will be transferred into money to improve the quality of the elderspsila life. In this paper, we first present the fundamental definition of reverse mortgage, and then make systematic illustration of issues like the market demand of reverse mortgage, personal demand and characteristics of consumers, etc. Based on these, there comes the discussion about the adaptability, meaning, and condition, and how to run it with the hope to illuminate theoretical support and practical strategy for China.