One of the biggest questions that we get asked quite often nowadays is that is Singapore really ready for reverse mortgages or is it just a blank space. Well giving a right answer here is not easy because there are a lot of things that need to be taken into consideration before making any statements. However, if really want to know, then yes, we can say that reverse mortgages are back and available in Singapore. If you are not familiar with the history of Singapore, then continue reading because we will quickly guide you through everything that you need to know before making any rash decisions. If you don’t know what happened before a decade ago, then you might not understand the benefits of reverse mortgages coming back to Singapore.
Lack of Demand
If you have read carefully above, then you might have noticed that we have said that the reverse mortgages are coming back to Singapore, which means that they had to be here before. That is completely right, some banks have started providing reverse mortgages to the people of Singapore all the way back in 2006. However, the issue that they came across was something that nobody really expected, the demand for such mortgages was almost zero. At the time in Singapore, nobody wanted those type of mortgages, it is hard to believe, but that’s how things were a few years back. The lack of demand was quickly leading to the discontinuation of these mortgages and in no time, there were no reverse mortgages in Singapore.
As you might have guessed, the reverse mortgages after few years around 2014 started getting a comeback. The reason why they made a comeback is that there were a lot of retired people in Singapore who owned a home and had limited amount of income. Just like that one thing lead to another and now you are able to use these reverse mortgages. Of course, making such a decision on your own is not the smartest thing, we suggest that you consult with a professional. When a professional approves of your idea you should continue.