Taiwan banks are now offering reverse mortgages which can provide the elderly a stable monthly income in exchange for equity in their homes. Homeowners can now access up to 60 to 80 percent of the equity in their homes through this program. However, the concept has not been widely accepted because of other established loan options. Mr. Wang lives in Dazhih with his daughter in this 20-ping apartment. He doesn’t seem interested in a reverse mortgage program offered by banks. Wang Ching-sungDazhih ResidentI don’t think it’s worthwhile because we need to put up this apartment as collateral and are also responsible for paying interest. Major banks in Taiwan have rolled out a reverse mortgage program. Most ask borrowers put up their real estate as collateral with banks providing loan amounts upwards of 60 to 80 percent of the value of the property. Monthly payments can stretch over 30 years to the borrower who is also responsible for paying interest. Lee Tsung-hsien Bank Vice PresidentThe country has more senior citizens than kids. We think that reverse mortgages can help our society.Banks hope that reverse mortgages will help them utilize excess funds and achieve higher interest rates. However, the success of the program may ultimately be up to consumers who will be the judge of this new financial instrument.
