A Global Response to Retirement Income Challenges
When I started in reverse mortgages back in the year 2000, it felt like the wild wild west. Few people understood what the product actually was, misinformation was everywhere, and it often felt like we were building the airplane while flying it. But even then, I saw something powerful—an untapped tool that could help retirees create financial breathing room without giving up their homes or their dignity.
Fast forward to today, and the conversation around housing wealth has matured. While misunderstandings still linger, the modern reverse mortgage is now backed by decades of research, regulation, and strategic application. And it’s not just happening in the U.S.
Retirement income sustainability is no longer just an American issue, it’s a global concern. Around the world, people are living longer, expenses are rising, and economic conditions are increasingly unpredictable. Whether it’s inflation, market swings, or geopolitical tension, today’s retirees face real challenges in securing reliable income.
That’s why more than two dozen countries have introduced reverse mortgage-type programs. While these products vary in structure, regulation, and adoption—from government-backed to private-sector initiatives—they share a common goal: helping older homeowners access home equity to support retirement needs.
Countries like Canada, the UK, Australia, South Korea, and Malaysia have recognized that housing wealth is too significant to ignore. Some programs are mature, while others are still in pilot phases, but the global trend is clear: reverse mortgages are no longer fringe ideas.
“Sooner or later, to have a decent retirement, a number of people are going to have to tap into their home equity. It’s not a matter of choice. This is going to be an essential part of the foundation for funding retirement around the world.”
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A Brief History of Reverse Mortgages in the United States
Here in the United States, reverse mortgages have been part of the retirement landscape for more than 60 years. The first known loan was made in 1961 by a private lender, Deering Savings & Loan in Portland, Maine. Nearly three decades later, in 1988, Congress authorized the Home Equity Conversion Mortgage (HECM) as an FHA-insured product, officially making reverse mortgages a government-sponsored option for retirees. Since then, the HECM program has evolved into a strategic tool designed to help homeowners age 62 and older convert a portion of their home equity into tax-free income.
For financial advisors, this international momentum sends a strong message: housing wealth is a legitimate part of the retirement income conversation. And today’s advisor needs every viable tool at their disposal to serve clients well.
Below is a chart of 24 other countries that offer reverse mortgage-type programs. While these programs vary widely, each represents a local effort to help retirees access housing wealth. The list includes product names, minimum age requirements, and the start year—based on available public data. Some of the start years are exact, while others are approximate, particularly for programs that evolved over time or began as pilot initiatives.
The 24 Other Countries
| Country | Product Name | Minimum Age | Start Year |
|---|---|---|---|
| Canada | CHIP Reverse Mortgage (by HomeEquity Bank) | 55 | 1986 |
| United Kingdom | Lifetime Mortgage (under Equity Release) | 55 | 1991 |
| Australia | Reverse Mortgage / Home Equity Access Scheme (government option) | 60 | 1996 |
| New Zealand | Reverse Mortgage (e.g., Heartland Reverse Mortgage) | 60 | 2004 |
| Japan | Reverse Mortgage Loan (リバースモーゲージ) | 60–65 | 1981 |
| South Korea | Housing Pension (주택연금, via KHFC) | 55 (avg. 60 if couple) | 2007 |
| Singapore | Lease Buyback Scheme (HDB) | 65 | 2009 |
| China | Home Pension Scheme (住房反向抵押养老保险) | 60 | 2014 |
| India | Reverse Mortgage Loan (RML, via NHB guidelines) | 60 | 2007 |
| Germany | Immobilienverrentung (Real estate annuitization) | 65 | 2005 |
| France | Prêt Viager Hypothécaire (Lifetime mortgage) | 60–65 | 2006 |
| Spain | Hipoteca Inversa (Reverse Mortgage) | 65 | 2007 |
| Italy | Prestito Vitalizio Ipotecario (Lifetime Mortgage Loan) | 60 | 2005 |
| Ireland | Lifetime Loan (e.g., Spry Finance) | 60 | 2006 |
| Netherlands | Opeethypotheek (Home Release Mortgage – limited market) | 60–65 | 2007 |
| Sweden | Omvända bolån (Reverse Mortgage – niche/private lenders) | 60 | 2010 |
| Norway | RenteReverse / Seniorlån (Senior Loan) | 60 | 2008 |
| Finland | Käänteinen asuntolaina (Reverse Mortgage) | 60 | 2010 |
| South Africa | Property Life Annuity / Reverse Mortgage (pilot offerings) | 60 | 2006 |
| Thailand | Elderly Mortgage Loan (pilot by Government Housing Bank) | 60 | 2019 |
| Hong Kong | Reverse Mortgage Programme (by HK Mortgage Corporation) | 55 | 2011 |
| Taiwan | Reverse Mortgage Loan (老年人住房反向抵押貸款) | 60 | 2007 |
| Malaysia | Skim Saraan Bercagar (SSB, Retirement Scheme) | 55 | 2019 |
| Israel | Reverse Mortgage (משכנתא הפוכה – regulated by Bank of Israel) | 60 | 2005 |
Summary
Today’s retirement in America is going to last longer, cost more, and be less predictable than any previous generation has experienced. That puts increasing pressure on both retirees and the financial professionals who serve them. Advisors need every viable resource at their disposal to help clients create sustainable, flexible retirement income strategies.
The modern reverse mortgage is one such tool. No longer a last resort, it’s a strategic option that deserves consideration in the right circumstances.
For a basic overview of how the program works and when it may make sense, please check out my MasterClass at www.HousingWealthMasterClass.com.
What to Do When You Have a Client or a Case?
- Go to www.HousingWealthPro.com and request a Housing Wealth Illustration. Give Details in the “Notes” Section including the clients’ phone # if they would like a Housing Wealth Assessment. You can also
- Schedule a Time to Speak with Me: Click Here
Related Articles:
- What Nobel Laureate Dr. Robert Merton Wants Financial Advisors to Know About Reverse Mortgages
- Seven Ways to Lower Retirement Taxes With a Reverse Mortgage
- Creating a Long-Term Care Health Plan with Reverse Mortgages
- How to Uncover the Social Security Time Bomb
The content of this blog is for financial advisors and professionals only and is not intended for consumer use. Names, cases, and scenarios are fictionalized for illustrative purposes. The opinions expressed here are those of the author alone and do not reflect the views of any affiliated entities or individuals. Don Graves, NMLS #142667.
