| Summary: | 碩士 === 逢甲大學 === 經營管理碩士在職專班 === 98 === Following the gradual extended life expectancy of the people, Taiwan is marching towards an aging society with an emerging trend of low birth rate and an issue of future source income for the elderly retirees - whether or not there is an alternative funding source to improve the daily life and medical expenses after their retirement. The high private residential rate characteristic in Taiwan has prompted us conduct this study in an attempt to explore the financial product of reverse mortgage loan based on the housing value in Taipei City. Hence, the transaction value of the residential home market in Taipei City and family income status were used to examine the financial product of reverse mortgage loan, whether or not it is sufficient to cope with the daily life and medical expenses of the elderly retirees?
Many countries are promoting the “reverse mortgage loan” system, and Australia is one example that has done it successfully. The United States had failed to implement the system at the start but later modified it to allow the government to play in the role. This involves the elderly to mortgage their houses to the bank, and the bank pays a fixed monthly loan to the elderly. Once the payment has reached 95% of the value of house loan, the government will intervene to pay the post-living expenses for the elderly to reduce the risk that the bank might encounter.
The research assumption and formulae were referred to the transaction value of residential home market in Taipei City, home income status and Sinyi Realty index to calculate the monthly annuity. The research method was carried out by assuming a standardized individual of more than 65 years old residing in Taipei City to apply for a financial product of reverse mortgage loan. In the case of housing price index of 2%, start-up rate of 10%, and 20 years of maturity, the general standardized individual of more than 65 years old is able to receive an annuity of NT$66,717 monthly. This is deemed sufficient to cover the daily life and medical expenses for the elderly retirees.
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