Reverse Mortgage
A reverse mortgage is the opposite of a conventional home loan. It is an ideal option
for senior citizens who require regular income. For senior citizens who don’t have financial support from their children or their children live in abroad and they don’t want to live there. This policy is only for senior citizens. Generally in India people don’t take reverse mortgage because they are emotionally attached with their property instead of using their property for regular income they choose a low standard life. As an example we can see the senior citizens of rural sector how they live their life because they don’t have money but they have property and they don’t use it.
How does reverse mortgage work?
Firstly, bank estimate the price of the property depending upon the various factors. The periodic payments also known as reverse EMI
are received by the borrower over fixed loan tenure. The borrower continues to reside in the property till the end of his life and receives a periodic payment on it.
Guidelines for reverse mortgage
Maximum loan amount would be up to 60% of the value of the residential property.
Life of the property should be minimum 20 years
Property should be the permanent primary residence of the individual.
