Mizuho Bank begins offering reverse mortgages to elderly Japanese

Estimates earnings of US$51 billion from product.

Mizuho became one of the first Japanese megabanks to issue reverse mortgages to the country’s aging population, and expects an increased demand for future customers.

Mizuho Bank began offering reverse mortgages on July 29 to Tokyo customers aged 55 and older who own houses on land assessed at US$408,000 (¥40 million) or more.

After starting in Tokyo, Mizuho plans to provide reverse mortgages prefectures such as Kangawa, Chiba and Saitama beginning October 1. The bank is also considering offering the home equity-tapping loans in Osaka, Kyoto, Hyogo and Aichi prefectures in the future.

Mizuho estimates the potential demand for reverse mortgages will reach about 230,000 customers in Tokyo and the additional prefectures at some US$51 billion.