Khushi Dubey
FrankBanker    Intern   Exp: Fresher   Enthusiast

Reverse Mortgage

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

  1. The income the borrower receives from the bank will be tax free.
  2. 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.
  3. 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

 

 

 

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