The Role of Attitude in Reverse Mortgage Loan Adoption: A Mediation Effects on Behavioral Intention

Abstract

One innovative financial instrument that has recently come to light as a potential solution to the problem of unstable income during retirement is the Reverse Mortgage Loan (RML). This loan enables homeowners who are over the age of 60 to borrow money against the equity that they have in their homes. Due to monetary, social, and psychological considerations, a significant number of individuals are unwilling to use RMLs, despite the many benefits that they provide. This study aims to analyse the behavioural elements that influence the desire to use RMLs among older homeowners. The study places a particular focus on attitude as a moderator while conducting its investigation. This research expands upon the Theory of Planned Behaviour (TPB) by include a variety of significant aspects that have an impact on attitude and behavioural intention. These factors include perceived ability, perceived bequest incentive, social influence, and feeling of location attachment. A method known as Partial Least Squares Structural Equation Modelling (PLS-SEM) is used to conduct an analysis of survey data from seven hundred elderly citizens who are homeowners. This is done in order to give robust empirical validation. According to the findings, attitude plays a significant part in the adoption of RML because it has a significant impact on the connection between significant factors and the desire to behave in a certain way. The consequences of these results for legislative and financial policy are significant. For example, there is a need for more targeted communication efforts and trust-building measures in order to promote the adoption of RML among senior homeowners.