Reverse mortgages to start in pilot program
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.