Who wants to have their home and eat it too? Interest in reverse mortgages in the Netherlands
Abstract We carry out an empirical analysis to assess the level of interest in reverse mortgages in the Netherlands. Our results indicate that among Dutch homeowners there is substantial potential interest in reverse mortgages, especially for the purpose of being able to live more comfortably and not worry about money until death, or to make a significant expenditure on home improvements or traveling. Of the respondents who are interested in taking out a reverse mortgage loan, most indicate they prefer a line of credit (42%), while fewer prefer an annuity (15%) or a lump sum (10%). Our regression results, based on rich survey data, indicate that interest is higher among the self-employed and those who expect pension cuts, have wishes for big expenditures, have a high housing wealth relative to their income or already have more than one mortgage. Women and those with (grand)children, a lower socioeconomic status, sufficient savings and/or a deteriorating health are less interested. We find that giving examples of using a reverse mortgage for the benefit of the homeowners’ (grand)children significantly raises interest in reverse mortgages among people who wish to leave a bequest. We interpret this as evidence that people are unaware of the potential of reverse mortgages to optimize the timing of wealth transfers. Highlights Empirical analysis of interest in reverse mortgages among Dutch homeowners. Considerable interest in reverse mortgage loans to increase consumption options. A line of credit (42%) is more preferred than an annuity (15%) or a lump sum (10%). Interest higher among self-employed and substantially lower among (grand)parents. Gifting examples significantly raise interest among those with bequest wish.
유료 다운로드의 경우 해당 사이트의 정책에 따라 신규 회원가입, 로그인, 유료 구매 등이 필요할 수 있습니다. 해당 사이트에서 발생하는 귀하의 모든 정보활동은 NDSL의 서비스 정책과 무관합니다.
원문복사신청을 하시면, 일부 해외 인쇄학술지의 경우 외국학술지지원센터(FRIC)에서
무료 원문복사 서비스를 제공합니다.
NDSL에서는 해당 원문을 복사서비스하고 있습니다. 위의 원문복사신청 또는 장바구니 담기를 통하여 원문복사서비스 이용이 가능합니다.
- 이 논문과 함께 출판된 논문 + 더보기