Reverse mortgages(RM)are an attractive tool to increase retirement incomes and to face the needs of health care for elderly people.The investor in the RM market faces several risks:longevity risk,as retirees’life expectancy increases,interest rate risk,especially in the low-rate post-crisis period,property market risk,in the last stage of the current business cycle.In our pricing model we incorporate the overall risk of the RM,focusing on the feature of the developing Chinese market.