Readiness of the Zimbabwe financial institutions to the establishment of Reverse Mortgages as a financial vehicle for the aged

Abstract

Zimbabwe is endowed with individuals who are asset rich but cash poor. Following the hyper inflationary period of 2007 to 2009 homeowners were left debts free as they were able to pay off for their properties at very low prices but the same are now getting meagre payouts in terms of pensions. This then has created an opportune time to establish the reverse mortgage market. The survey was used to assess the readiness of all financial institutions on the adoption of reverse mortgage. Questionnaires were administered to all financial institutions in order to elicit the options on managers. Findings show that the main condition for reverse mortgage to work has to do with willingness and ability of stakeholders, that is, employees and shareholders to use and accept it. The major factors that influences reverse mortgage were to do with those factors that pose financial risk to the consumer, namely, confidence in the market, tax issues, property prices and issues of indebtedness.