Re­verse mort­gages to start in pi­lot pro­gram

China Daily (Canada) - - NEWSCAPSULE -

China is go­ing to al­low its ris­ing num­ber of re­tirees to en­ter the re­verse mort­gage mar­kets in a two-year pi­lot pro­gram.

Re­verse mort­gages are ex­tended to older cit­i­zens who use their homes as col­lat­eral in re­turn for reg­u­lar pay­ments from in­sur­ers. Ac­cord­ing to the China In­sur­ance Reg­u­la­tory Com­mis­sion CIRC, this type of in­sur­ance will help broaden fi­nan­cial re­sources for the el­derly and ex­pand the re­tire­ment ser­vices of­fered by in­sur­ance com­pa­nies.

Apart­ment own­ers aged above 60 are el­i­gi­ble, the com­mis­sion said in an on­line state­ment. At present, China has more than 200 mil­lion people over the age of 60, in­dus­try sta­tis­tics showed.

The pi­lot pro­gram starts on July 1 in Bei­jing, Shang­hai, Guangzhou and Wuhan, the cap­i­tal of Hubei prov­ince.

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