The reverse mortgage: for an optimum control

Author

Sophie Roussin

Organization

Union des consommateurs

Published

2007

Summary

This research project proposed to identify problems associated with reverse mortgages and to examine the functionality and effectiveness of current controls in order to determine whether or not consumers require more than what is currently in place. The first chapter examines the financial product itself: the theory behind it, its definition and functionality. In the same chapter is a brief illustration of the key elements required to develop a favourable market for the reverse mortgage. Chapter two explores the reverse mortgage market in Canada and in different countries where it was developed: Great Britain, the U.S., and Australia. The third chapter offers a view of alternatives offered to elderly consumers who need to increase their revenue and focuses on the pros and cons of the reverse mortgage. The fourth and last chapter presents the results of an online survey whose goal was to evaluate the targeted market’s awareness of different financial income products, including the reverse mortgage. Conclusions are followed by recommendations which can be applied to resolve problems exposed in the research.

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English and French

OCA Funded Research
This research received funding support through the Office of Consumer Affairs' Contributions Program.


Contact information

Address
Union des consommateurs
7000 Parc Ave, Suite 201
Montreal, QC  H3N 1X1
Telephone
(514) 521-6820
Fax
(514) 521-0736

Source: Consumer Policy Research Database

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