Reverse mortgage your House for Regular Income in Retirement

REVERSE MORTGAGE A reverse mortgage loan is a unique credit option.

Introduction to Reverse Mortgage In a reverse mortgage, the lender uses the equity of your home as security to provide you with a tax-free loan. As it is used by older homeowners to receive income from the equity in their home to be repaid when they no longer occupy the home.

Features of Reverse Mortgage Loan ● Nature of loan payment - A borrower can choose to receive the loan amount in one or more lump-sum payments, periodic payments (monthly, quarterly, semi-annually, or annually), and/or a committed line of credit. ● Repayment of loan - One of the reverse mortgage benefits is that a borrower does not compulsorily need to repay the loan in their lifetime. ● End-usage restriction - One key point where a reverse mortgage loan is distinctive from a loan against property is the entailing of end-usage restriction. In the event an individual chooses to avail of a lump sum, it can only be on account of medical emergencies.

Who Are Eligible for Reverse Mortgage Loan? ● The applicant must be an Indian citizen above 60 years of age. ● In the case of joint applicants – a married couple – one of them must be above 60 years of age while the other must be above the age of 55 years. ● The property to be mortgaged must be a self-acquired, self-inhabited residence. Therefore, an individual cannot mortgage a residential property that he/she has inherited or received as a gift. ● The mortgaged property should possess a minimum of 20 years of residual life.

Reverse mortgage benefits is that it ensures financial wellbeing in old age and provides monetary independence to senior citizens. It does not create immediate financial liability on the borrower as he/she does not need to repay the loan amount in EMIs.

Reverse Mortgage Finance your: ● Debt consolidation Living expenses Home improvements Helping children with college Buying another home that might better meet your needs as you age

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