Main Article Content

Sarita Gupta
Dr. Sanjay Kumar


Cash poor- Home Rich, Demographic Determinants, Economic Determinants, Housing Wealth, Population Aging, Reverse Mortgage


Purpose: In the regime of stretched old-age social security, federals and policymakers are presuming housing wealth as a means of sustainable livelihood for elderly homeowners.  The current study attempts to discover which demographic and financial factors are significant determinants of home equity liquidation through reverse mortgage of Indians in later life.

Methodology: Binary logistic regression is applied to survey-based primary data of 410 elderly homeowners through SPSS software.

Main Findings: Results of binary logistic regression model depicts that elderly considering an RM likely to be female, older, having poor health, childless or having girl child only, long life expectancy, resident of metro, employed, cash-constrained, not having any kind of insurance cover and those children are financially well are significantly more willing to opt for RM scheme.

Implication: Study renders implications for Government and NHB, to provide refinancing facility to commercial banks so that home equity liquidation product like Reverse Mortgage can be able to fulfill income needs of greying India.

Novelty/Originality: Length of research in European and western countries have been carried out to explore the attitude of older homeowner for housing wealth liquidation but Indian context, is largely untapped that how Indian older homeowner perceive their housing wealth and which factor influences them to delete it. In this way, current study attempts to bridge the research gap.


Download data is not yet available.


Metrics Loading ...
Abstract 25 | PDF Downloads 12 XML Downloads 1


1. Benito, A. (2009). Who withdraws housing equity and why?. Economica, 76(301), 51-70.
2. Boehm, T. P., & Ehrhardt, M. C. (1994). Reverse mortgages and interest rate risk. Real Estate Economics, 22(2), 387-408.
3. Bütler, M., & Teppa, F. (2007). The choice between an annuity and a lump sum: Results from Swiss pension funds. Journal of Public Economics, 91(10), 1944-1966.
4. Case, B., & Schnare, A. B. (1994). Preliminary evaluation of the HECM reverse mortgage program. Real Estate Economics, 22(2), 301-346.
5. Chatterjee, S. (2016). Reverse mortgage participation in the United States: Evidence from a national study. International Journal of Financial Studies, 4(1), 5-15.
6. Chen, A., & Jensen, H. H. (1985). Home equity use and the life cycle hypothesis. Journal of Consumer Affairs, 19(1), 37-56.
7. Chou, K. L., Chow, N. W., & Chi, I. (2006). Willingness to consider applying for reverse mortgage in Hong Kong Chinese middle-aged homeowners. Habitat International, 30(3), 716-727.
8. Dillingh, R., Prast, H., Rossi, M., & Brancati, C. U. (2017). Who wants to have their home and eat it too? Interest in reverse mortgages in the Netherlands. Journal of Housing Economics, 38 (4), 25-37.
9. Feinstein, J., & McFadden, D. (1989). The dynamics of housing demand by the elderly: Wealth, cash flow, and demographic effects. In The economics of aging (pp. 55-92). University of Chicago Press.
10. Font, C. J., Gil, J., & Mascarilla, O. (2010). Housing wealth and housing decisions in old age: sale and reversion. Housing studies, 25(3), 375-395.
11. Fornero, E., Rossi, M., & Brancati, M. C. U. (2016). Explaining why, right or wrong, (Italian) households do not like reverse mortgages. Journal of Pension Economics & Finance, 15(2), 180-202.
12. Gibler, K. M., & Rabianski, J. (1993). Elderly interest in home equity conversion. Housing Policy Debate, 4(4), 565-588.
13. Gupta, S., & Kumar, S. (2018a). Influence of Demographic Determinants on Reverse Mortgage Willingness: An Empirical Study from India. Arthshastra: Indian Journal of Economics & Research, 7(2), 7-20.
14. Gupta, S., & Kumar, S. (2018b). Do Elder Homeowners from Different Regions Differ Significantly in Awareness and Willingness of Reverse Mortgage: Some Sample Evidence from Delhi and Rajasthan. IUP Journal of Bank Management, 17(2), 78-85.
15. Gupta, S., & Kumar, S. (2017). Investigating relationship between demand and awareness of reverse mortgage: An empirical analysis from India. Journal for Studies in Management and Planning, 3(13), 240-248.
16. Hurst, E., & Stafford, F. (2004). Home is where the equity is: Mortgage refinancing and household consumption. Journal of Money, credit and Banking, 36 (6), 985-1014.
17. Lee, Y. G. (2005). Baby boomers and home equity borrowing. Financial Counseling and Planning, 16(2), 49-61.
18. Mayer, C. J., & Simons, K. V. (1994). Reverse mortgages and the liquidity of housing wealth. Real Estate Economics, 22(2), 235-255.
19. Megbolugbe, I. F., Sa-Aadu, J., & Shilling, J. D. (1997). Oh, yes, the elderly will reduce housing equity under the right circumstances. Journal of Housing Research, 53-74.
20. Mitchell, O. S., & Piggott, J. (2004). Unlocking housing equity in Japan. Journal of the Japanese and International Economies, 18(4), 466-505.
21. Ong, R. (2008). Unlocking housing equity through reverse mortgages: The case of elderly homeowners in Australia. European Journal of Housing Policy, 8(1), 61-79.
22. Painter, G., & Lee, K. (2009). Housing tenure transitions of older households: Life cycle, demographic, and familial factors. Regional Science and Urban Economics, 39(6), 749-760.
23. Rasmussen, D. W., Megbolugbe, I. F., & Morgan, B. A. (1995). Using the 1990 public use microdata sample to estimate potential demand for reverse mortgage products. Journal of Housing Research, 6(1), 1-23.
24. Rauterkus, S., Munchus, G., & Slawson Jr, V. C. (2009). The home equity conversion mortgage: A study of attitudes and awareness. Journal of Real Estate Portfolio Management, 15(3), 267-280.
25. Salandro, D., & Harrison, W. B. (1997). Determinants of the demand for home equity credit lines. Journal of Consumer Affairs, 31(2), 326-345.
26. VanderHart, P. G. (1995). The Socio-economic Determinants of the Housing Decisions. Journal of Housing for the Elderly, 11(2), 5-35.
27. VanderHart, P. G. (1994). An empirical analysis of the housing decisions of older homeowners. Real Estate Economics, 22(2), 205-233.
28. Venti, S. F., & Wise, D. A. (1991). Aging and the income value of housing wealth. Journal of Public Economics, 44(3), 371-397.
29. Venti, S. F., & Wise, D. A. (1990). But they don't want to reduce housing equity. In Issues in the Economics of Aging (pp. 13-32). University of Chicago Press, 1990.