As of 2024 fourth quarter reporting, nearly 9,000 reverse mortgage loans cumulatively valued at NT$50.9 billion (over US$1.5 billion) have been approved. The Financial Supervisory Commission (FSC) announced the statistics on Friday, stating that loan numbers have increased roughly 15% every year since domestic banks began offering the service in 2015.
FSC data showed that the average contract length was 22.1 years. The total number of approvals for women reached more than 5,140, accounting for 57.25% of loans, while the number of men reached nearly 3,840, accounting for 42.75%.
A reverse mortgage loan allows homeowners over a certain age to borrow money using their home as security for the loan. Borrowers do not make monthly mortgage payments, and interest and fees are added to the loan balance each month, resulting in an increasing balance. The homeowners are still required to pay for any property taxes, insurance, and upkeep, until the date when the balance must be paid in full by either the homeowner or heirs, usually by selling the home.
The National Development Council projects that by 2039, seniors of 65 or above will account for 30 percent of Taiwan's total population and by 2070, Taiwan’s median age will reach 62.4. Reverse mortgage services are one of many government measures designed to cope with the arrival of a super-aged society.