Reverse Mortgage: An Empirical Study in Indian Perspective

Reverse mortgage as an innovative financial product enables senior citizens to mortgage their house property with a lender and convert part of the home equity into tax-free income without having to sell the house. Despite growth in this market and the expected popularity of the concept, the results are not satisfactory in India. The present study tries to explore various factors affecting the choice of potential buyers of Reverse Mortgage Loan in India. It tends to establish the linkage between demographic variables and their effect on attitude towards reverse mortgage. The analysis resulted in extraction of five factors using factor analysis technique, namely, Financial Independence, Revenue returns, Risk involvement, Complex Structure and Ownership.