Reverse Mortgages Coming To China

As China tackles its population growth problems between shortages of housing and lack of affordable housing options, the China Post is reporting that the Chinese government anticipates rolling out reverse mortgages in 2012 to deal with a growing population that needs options to age in place.  The program will be available to citizens over 65 years of age and the product will be rolled out on a trial basis to test the product in various markets.  The article states that the government will provide the initial funding of over $200 million to encourage banks to offer the product.  It is estimated that the number of senior citizens aged 65 and above accounted for 10.4 percent of the nation’s total population in 2008 and the figure is expected to rise to 14 percent in 2017 and further up to 20.1 percent in 2025.

Government to help senior home owners