| Summary: | 碩士 === 國立高雄第一科技大學 === 金融研究所 === 100 === Because of the change of population structure, foreign countries have been offering innovative financial products for the elderly population, especially the most attention to reverse mortgages. Under previous studies, house price appreciation is the most important factor to evaluate the loan for financial institutions. However, house price appreciation has two sides of impact on the demand of reverse mortgages, so this paper research the non-linear relationship between house price appreciation and the growth of demand for reverse mortgages. The empirical results show when the threshold variable for 10-year Treasury bond interest rates, it is the smooth transition threshold effect for the house price appreciation to the growth of demand for the reverse mortgages .While the interest rate doesn''t reach the threshold, the growing of house price appreciation is in the converse direction of the demand for reverse mortgages which represent people are conservative for future prosperity with the low standard interest rate, and the financial institutions estimated the value of the house turned to rigorous. Even if the borrowers grant a mortgage as the house prices are in the condition of appreciation, the loan-to-value ratio for borrowers could be reduced that make the elderly people hardly has desire to apply the reverse mortgages. If the interest rate, however, has above the threshold, the house price appreciation will promote the growth of demand for reverse mortgages. In case the future vigorously prosperity drives the high interest rates as well as the real estate market up, the house prices would probably increased which leads to the increment amount of available loan and rises the demand of applying for reverse mortgages from elderly people. The results of this study can let financial institutions effectively understand the trends and needs of reverse mortgages and can help them promotion and marketing their loans, available to financial institutions or the Government of reference of this commodity.
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