The China Post is reporting that the government expects to roll out reverse mortgages in 2012 to help senior citizens use their own real estate properties to help cover living costs. Initially, officials said the program will be implemented on a trial basis to test market reactions.
The program will be available to people above 65 years old and live alone without regular income and the care of spouses or other dependents. To get the product launched, the government will provide a seed fund to encourage banks to provide the new financial service.
According to the article, the funds (estimated NT$200 million) could come from finances generated by the public lottery that is managed by the Ministry of the Interior (MOI).
Officials said 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.
The system will enable senior home owners help themselves and reduce the financial burden of other taxpayers, they said.