Willingness to consider applying for reverse mortgage in Hong Kong Chinese middle-aged homeowners

Kee Lee CHOU, Nelson W.S. CHOW, Iris CHI

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23 Citations (Scopus)

Abstract

The reverse mortgage plan has been proposed as a viable solution to improve or maintain the economic status of older adults who are “house-rich but cash-poor”. The objectives of the current study were: (1) to find out the percentages of the middle-aged (aged between 45 and 59) homeowners in Hong Kong who would consider applying for the reverse mortgage plan when they retired or became older and (2) to identify socio-demographic, economic and health-related characteristics that were significantly related to the willingness to consider applying for the reverse mortgage plan. In a random sample of 1867 Hong Kong middle-aged adults, 663 of them owned their self-occupied flats. Approximately, 11%±2.4% (p < 0.05) of these home-owners definitely or probably would consider to apply for such plan if it was available in Hong Kong local banks. Moreover, using logistic regression analyses, we found that childlessness and possession of stocks, bonds or funds were positively related to the willingness to consider applying for the plan and the amount of financial asset (excluding their self-occupied properties) was negatively associated with that willingness. Results suggest that the reverse mortgage may be another feasible option to secure the retirement income for the next cohort of older adults in the coming two decades. Copyright © 2005 Elsevier Ltd. All rights reserved.
Original languageEnglish
Pages (from-to)716-727
JournalHabitat International
Volume30
Issue number3
DOIs
Publication statusPublished - Sep 2006

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homeowner
Hong Kong
childlessness
retirement
possession
economics
random sample
logistics
assets
bank
plan
income
regression
health

Bibliographical note

Chou, K.-L., Chow, N. W. S., & Chi, I. (2006). Willingness to consider applying for reverse mortgage in Hong Kong Chinese middle-aged homeowners. Habitat International, 30(3), 716-727. doi: 10.1016/j.habitatint.2005.04.008

Keywords

  • Reverse mortgage
  • Middle-aged adults
  • Hong Kong