IDEAS home Printed from https://ideas.repec.org/a/vrs/remava/v26y2018i3p5-23n1.html
   My bibliography  Save this article

Determinants of Reverse Mortgage Usage in Malaysia

Author

Listed:
  • Mohammed Mohammed Ishaq

    (Faculty of Technology Management Business, Universiti Tun Hussein,Onn, Malaysia)

  • Sulaiman Noralfishah

    (Faculty of Technology Management & Business, Universiti Tun Hussein,Onn, Malaysia)

Abstract

This study aims to identify the factors that influence a household’s willingness to use reverse mortgage as a source of supplementary income in old age by adopting the original Theory of Planned Behavior (TPB) and extending it with three other additional constructs. Using a convenience sampling technique, a total of 391 valid questionnaires were used for data analysis. The data analysis was conducted using the SmartPLS software, version 3.2.6. The results suggest that the sense of attachment to a place, attitude, motive of bequest, social influence and perceived ability positively influence a household’s willingness to use reverse mortgage, while financial behavior was found to negatively influence the willingness to do so. The findings of this study extend the application of the TPB to the domain of reverse mortgage product.

Suggested Citation

  • Mohammed Mohammed Ishaq & Sulaiman Noralfishah, 2018. "Determinants of Reverse Mortgage Usage in Malaysia," Real Estate Management and Valuation, Sciendo, vol. 26(3), pages 5-23, September.
    • Handle: RePEc:vrs:remava:v:26:y:2018:i:3:p:5-23:n:1
    DOI: 10.2478/remav-2018-0021
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/remav-2018-0021
    Download Restriction: no
    File URL: https://libkey.io/10.2478/remav-2018-0021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David A. Wise, 1989. "The Economics of Aging," NBER Books, National Bureau of Economic Research, Inc, number wise89-1.
    2. Nosi, Costanza & D’Agostino, Antonella & Maria Pagliuca, Margherita & Alberto Pratesi, Carlo, 2014. "Saving for old age: Longevity annuity buying intention of Italian young adults," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 51(C), pages 85-98.
    3. Hui Shan, 2011. "Reversing the Trend: The Recent Expansion of the Reverse Mortgage Market," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 39(4), pages 743-768, December.
    4. Ali, Faizan & Kim, Woo Gon & Ryu, Kisang, 2016. "The effect of physical environment on passenger delight and satisfaction: Moderating effect of national identity," Tourism Management, Elsevier, vol. 57(C), pages 213-224.
    5. Rachel Ong & Gavin A. Wood & Siobhan Austen & Therese Jefferson & Marietta E.A. Haffner, 2015. "Housing Equity Withdrawal in Australia: Prevalence, Patterns and Motivations in Mid-to-late Life," Housing Studies, Taylor & Francis Journals, vol. 30(7), pages 1158-1181, October.
    6. Katja Hanewald & Thomas Post & Michael Sherris, 2016. "Portfolio Choice in Retirement—What is The Optimal Home Equity Release Product?," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 83(2), pages 421-446, June.
    7. Peter Chinloy & Isaac F. Megbolugbe, 1994. "Reverse Mortgages: Contracting and Crossover Risk," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 22(2), pages 367-386, June.
    8. Kolm, Serge-Christophe, 2006. "Introduction to the Economics of Giving, Altruism and Reciprocity," Handbook on the Economics of Giving, Reciprocity and Altruism, in: S. Kolm & Jean Mercier Ythier (ed.), Handbook of the Economics of Giving, Altruism and Reciprocity, edition 1, volume 1, chapter 1, pages 1-122, Elsevier.
    9. Hanudin Amin & Abdul Rahim Abdul Rahman & Dzuljastri Abdul Razak, 2014. "Consumer acceptance of Islamic home financing," International Journal of Housing Markets and Analysis, Emerald Group Publishing Limited, vol. 7(3), pages 307-332, July.
    10. Rachel Ong, 2008. "Unlocking Housing Equity Through Reverse Mortgages: The Case of Elderly Homeowners in Australia," European Journal of Housing Policy, Taylor and Francis Journals, vol. 8(1), pages 61-79.
    11. Rachel Ong, 2008. "Unlocking Housing Equity Through Reverse Mortgages: The Case of Elderly Homeowners in Australia," European Journal of Housing Policy, Taylor and Francis Journals, vol. 8(1), pages 61-79.
    12. Christopher J. Mayer & Katerina V. Simons, 1994. "Reverse Mortgages and the Liquidity of Housing Wealth," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 22(2), pages 235-255, June.
    13. Janneke Toussaint & Hanna Szemzo & Marja Elsinga & Jozsef Hegedüs & Nora Teller, 2012. "Owner-occupation, Mortgages and Intergenerational Transfers: The Extreme Cases of Hungary and the Netherlands," International Journal of Housing Policy, Taylor & Francis Journals, vol. 12(1), pages 69-90.
    14. Fornero, Elsa & Rossi, Mariacristina & Urzí Brancati, Maria Cesira, 2016. "Explaining why, right or wrong, (Italian) households do not like reverse mortgages," Journal of Pension Economics and Finance, Cambridge University Press, vol. 15(2), pages 180-202, April.
    15. Viswanath Venkatesh & Fred D. Davis, 2000. "A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies," Management Science, INFORMS, vol. 46(2), pages 186-204, February.
    16. Paula Lopes & Joao Cocco, 2015. "Reverse Mortgage Design," 2015 Meeting Papers 632, Society for Economic Dynamics.
    17. Davidoff, Thomas & Gerhard, Patrick & Post, Thomas, 2017. "Reverse mortgages: What homeowners (don’t) know and how it matters," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 151-171.
    18. Chien-Chiang Lee & Kuo-Shing Chen & David So-De Shyu, 2015. "Credit, Equity Conversion and Housing Endowment: Analysis of Reverse Mortgage Markets," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 5(3), pages 1-5.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dillingh, Rik, 2016. "Empirical essays on behavioral economics and lifecycle decisions," Other publications TiSEM 0e2143e3-bd86-4302-90eb-e, Tilburg University, School of Economics and Management.
    2. Davidoff, Thomas & Gerhard, Patrick & Post, Thomas, 2017. "Reverse mortgages: What homeowners (don’t) know and how it matters," Journal of Economic Behavior & Organization, Elsevier, vol. 133(C), pages 151-171.
    3. Donoso, José & Ruiz, José Luis & Tapia, Pablo, 2019. "The social and economic effects of introducing reverse mortgages in Chile," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    4. Dillingh, Rik & Prast, Henriette & Rossi, Mariacristina & Urzì Brancati, Cesira, 2017. "Who wants to have their home and eat it too? Interest in reverse mortgages in the Netherlands," Journal of Housing Economics, Elsevier, vol. 38(C), pages 25-37.
    5. Carole Bonnet & Sandrine Juin & Anne Laferrère, 2019. "Private Financing of Long‑Term Care: Income, Savings and Reverse Mortgages," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 507-508, pages 5-24.
    6. Alessandro Piergallini, 2020. "Demographic change and real house prices: a general equilibrium perspective," Journal of Economics, Springer, vol. 130(1), pages 85-102, June.
    7. Wei Han & Ping Wang & Hao Xu & June-Sung Choi, 2017. "Evaluation of the Reverse Mortgage Option in Hong Kong," Asian Economic Journal, East Asian Economic Association, vol. 31(2), pages 187-210, June.
    8. Nandinee K. Kutty, 1998. "The Scope for Poverty Alleviation among Elderly Home-owners in the United States through Reverse Mortgages," Urban Studies, Urban Studies Journal Limited, vol. 35(1), pages 113-129, January.
    9. Hanewald, Katja & Bateman, Hazel & Fang, Hanming & Wu, Shang, 2020. "Is there a demand for reverse mortgages in China? Evidence from two online surveys," Journal of Economic Behavior & Organization, Elsevier, vol. 169(C), pages 19-37.
    10. Kyung Jin Choi & Byungkwon Lim & Jaehwan Park, 2020. "Evaluation of the Reverse Mortgage Option in Korea: A Long Straddle Perspective," IJFS, MDPI, vol. 8(3), pages 1-14, September.
    11. Mohammed Ishaq Mohammed & Noralfishah Sulaiman & Dahiru Adamu, 2018. "Dimensionality and Reliability of the Determinants of Reverse Mortgage Use Intention," Traektoriâ Nauki = Path of Science, Altezoro, s.r.o. & Dialog, vol. 4(2), pages 1013-1023, February.
    12. Yang, Jaehwan & Yuh, Yoonkyung, 2019. "Reverse Mortgages for Managing Longevity Risk in Korea," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 60(1), pages 21-40, June.
    13. Ming Pu & Gang-Zhi Fan & Yongheng Deng, 2014. "Breakeven Determination of Loan Limits for Reverse Mortgages under Information Asymmetry," The Journal of Real Estate Finance and Economics, Springer, vol. 48(3), pages 492-521, April.
    14. Cocco, Joao F. & Lopes, Paula, 2019. "Aging in place, housing maintenance and reverse mortgages," LSE Research Online Documents on Economics 100835, London School of Economics and Political Science, LSE Library.
    15. Mitchell, Olivia S. & Piggott, John, 2004. "Unlocking housing equity in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 18(4), pages 466-505, December.
    16. Murray, Tim, 2019. "Defined benefit pensions and homeownership in the post-Great Recession era," MPRA Paper 92601, University Library of Munich, Germany.
    17. Arts, Jori & Ponds, Eduard, 2016. "The Need for Flexible Take-ups of Home Equity and Pension Wealth in Retirement," Other publications TiSEM 4331ef5b-798f-48dd-8bb5-a, Tilburg University, School of Economics and Management.
    18. Muhammad Ali & Syed Ali Raza & Chin-Hong Puah & Mohd Zaini Abd Karim, 2017. "Islamic home financing in Pakistan: a SEM-based approach using modified TPB model," Housing Studies, Taylor & Francis Journals, vol. 32(8), pages 1156-1177, November.
    19. Tyson Lamarra & Aaron Bruhn & Michael Miller, 2023. "Stochastic modelling of the home equity access scheme," Australian Journal of Management, Australian School of Business, vol. 48(3), pages 652-677, August.
    20. Francis Wong, 2024. "Taxing Homeowners Who Won’t Borrow," CESifo Working Paper Series 11185, CESifo.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:remava:v:26:y:2018:i:3:p:5-23:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.