Discussion of Reverse Mortgage in Taiwan

• Main Authors: Chi-Chun Chao, 趙齊俊
• Other Authors: I-Ming Jiang
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/m569s5

碩士 === 元智大學 === 財務金融暨會計碩士班(財務金融學程) === 105 === In addition to introducing the types, characteristics and risks of reverse mortgage, this paper also introduces the development background and the current reverse mortgage operation mode for other countries that develop reverse mortgages, so that Taiwan’s government can use successful experience to improve the reverse mortgage. By referring to Szymanoski(1994) and Lin, Ko-chao (2009), I use the following three steps to calculate the annual payment of reverse mortgage. Firstly, I follow two papers to construct the index house price growth model. Secondly, I deduce the model of the net principal limit. Finally, I calculate the amount of countervailing mortgage payments in Taiwan and compare with the current trial results of three banks (Bank of Taiwan, The Shanghai Commercial & Savings Bank and Taiwan Cooperative Commercial Bank). It can be found that the estimated amount of the annuity is higher than the amount paid by the bank, whether it is estimated that the price is lower (pessimistic) or the price is higher (optimistic), because the current bank will deduct the interest expense when calculating, if consider this variable, it will get fair price.