Taiwan will begin accepting applications for reverse mortgages before this month ends, reports Focus Taiwan, the latest in the pilot program’s national rollout.
After announcing the pilot program on March 1, Taiwan’s Ministry of the Interior held a series of presentations on reverse mortgages throughout the country, the last forum meeting on April 2.
While the country’s reverse mortgage program bears similar resemblance to the one already implemented in the U.S., there are significant differences that set them apart.
For one, Taiwan’s planned program applies only to adults aged 65 and above who have no heirs, own real estate independently and live on a limited income.
Like an American reverse mortgage, Taiwan’s requires no repayment of the money borrowed until the homeowner dies or sells the property. Additionally, payouts are higher for borrowers who own higher valued homes.
Unlike the U.S., participation for the Taiwan program is limited to no more than 100 individuals during the trail period from 2013 to 2017, according to the country’s Ministry of the Interior.
Male borrowers will also receive higher monthly payouts than female borrowers, according to the article, since men have shorter life expectancies than women.
For example, a 65-year-old man who owns a house with a market value of NT$3 million (US $99,960) could receive an annuity of NT$8,200 (US $273.22) per month. A woman of the same age with a property worth the same amount would only be eligible to receive NT$7,100 (US $236.57) a month.
Payments will also increase by 1% a year to adjust with inflation, according to the Taiwan’s Department of Social Affairs.
The Ministry also said it would be accepting applications as soon as related documents were ready, writes Focus Taiwan.
Written by Jason Oliva