What Is A Reverse Mortgage?
Reverse mortgage is a loan which provides additional source of income for senior citizens who have a self-acquired or self-occupied home in India. The borrower is paid payments by the lender against the mortgage.
Reverse Mortgage Loan Eligibility Criteria
- A reverse mortgage is available to anybody over the age of 60. In case a couple wishes to opt for one, the age of spouse should be more than 58 years.
- The borrower must have a fully owned house. In case of a couple, at least one of them must own a house.
- The property must have been in existence for at least 20 years.
- Properties that are let out or being used for commercial uses are not eligible.
Top 3 Tax Benefits On Reverse Mortgages
- The income the borrower receives from the bank will be tax free.
- In the event that the house is renewed or repaired with this money, the amount spent on the renewal or repair will be eligible for deduction in computation of income.
- The repayment of the loan at the end of the loan term will not be considered deductible.
List of Banks That Offer Reverse Mortgage Scheme
National Housing Bank (NHB) | Punjab National Bank (PNB) |
Central Bank of India | Indian Bank |
Andhra Bank | Dewan Housing Finance Limited (DHFL) |
State Bank of India (SBI) | LlC Housing Finance |
Corporation Bank | Canara Bank |