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EXPLORING THE DETERMINANTS OF REVERSE MORTGAGE PURCHASE DECISION: EVIDENCE FROM INDIA

Abstract

This paper aims to explore the factors that affect the reverse mortgage purchase decision with reference to the Indian context. Reverse mortgage can be a presented as an effective solution to the problems of fast ageing population and increasing home ownership rate. The empirical investigations have been carried out using non-probability, purposive sampling of persons above the age of 30, owing a house in India. Primary data was collected using a 5 point Likert scale from 360 respondents. PLS- SEM has been chosen as the research tool. Findings suggest that perception about reverse mortgage has a significant positive impact while bequest motive, risk and financial savings significantly negatively impact the purchase decision for reverse mortgage loans. The empirical results of the study can provide insight to the policy makers and the banking fraternity to focus on the specific areas to enable reverse mortgage to be more widely acceptable.

Shruti Ashok

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