Equity release products. Analysis for the Netherlands

Equity release products are currently barely available on the Dutch financial market. However, these products are likely to gain more interest in the future. A lot of research has been done regarding reverse mortgage products but little towards other products such as home reversions and variations of home reversions. In this thesis different equity release contracts are analyzed from both a provider’s and consumer’s perspective. A vector autoregressive (VAR)
model is used to capture the dynamics of the economic variables, create scenarios for the future and determine the associated stochastic discount factors. A sensitivity analysis is preformed
and the currently offered products in the Dutch market are analyzed.