A Japanese bank became one of the first “mega-banks” to issue reverse mortgages to the country’s aging population, also foreseeing an increased demand for future customers, reports The Japan Times.
Mizuho Bank began offering reverse mortgages Monday to Tokyo customers aged 55 and older who own houses on land assessed at ¥40 million or more.
After starting in Tokyo, Mizuho plans to provide reverse mortgages prefectures such as Kangawa, Chiba and Saitama beginning October 1. The bank is also considering offering the home equity-tapping loans in Osaka, Kyoto, Hyogo and Aichi prefectures in the future.
Mizuho estimates the potential demand for reverse mortgages will reach about 230,000 customers in Tokyo and the additional prefectures to come to about ¥5 trillion, according to bank officials cited by The Japan Times.
Along with Mizuho, Sumitomo Mitsui Trust Bank and Tokyo Star Bank are among other financial institutions already providing reverse mortgages to the nation’s 55+ demographic.
Written by Jason Oliva