Influence of Demographic Determinants on Reverse Mortgage Willingness : An Empirical Study from India

The present study surveyed Indian elderly homeowners to assess their willingness for National Housing Bank's (NHB) scheme : Reverse Mortgage (RM). The prominent purpose to carry out the research was to analyze various demographic factors which contribute or hinder the potential demand of RM. Binary logistic regression was applied to analyze primary data of 410 elderly respondents. The results of the study indicated that : to be older, childless, living alone or only with spouse in home, resident of metro, ill health, and longer life expectancy were the key demographic variables that significantly and positively influenced the demand of RM. Gender, marital status, and education were found to be positive but insignificant, while awareness, though insignificant, was ascertained to be negatively related with the willingness to use RM. The results of the study recommended that mere introduction of RM in a portfolio of pension products is not sufficient. Demand for RM could be boosted by enhancing product attractiveness and by combining it with promotion of ground level awareness and counseling of possible beneficiaries to eliminate doubt and complexity attached with the product. If RM is properly implemented, then housing wealth of Indian “cash poor, home rich” elderly may be unlocked as a possible instrument to tackle the challenges of aging.