Analiza ryzyka renty hipotecznej i odwróconego kredytu hipotecznego
The analysis of the risk of reverse annuity contract and reverse mortgage

Summary/Abstract: The reverse annuity contract and reverse mortgage allow a property owner to receive a monthly benefit in return for the transfer of the ownership onto the company. These products have become of greater interest and are more popular, in particular in the situation of the aging of the Polish society and growth of the future lifetime. The infor-mation is given only about their advantages. No mention is about disadvantages and risks related with these products. The merely drawback is that the reverse annuity contract carries a risk in the event of mortgage fund bankruptcy. This is not the only risk associat-ed with the reverse annuity contract, as well as the reverse mortgage. The increase of interest of these products causes that the analysis of risk is a very important issue. The aim of this article is an overview and analysis of the risk and disadvantages connected with one of both products. The risk analysis is combined with theoretical deduction about the risks of these products and the numerical examples. The life annuities are used for the calculation. A fixed interest rate and a function depending on time specified by Svensson model are applied. The determination of real value of the property is made on the basis of so-called mixed method, which includes a comparative approach and the method of cor-recting the average price per square meter.

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