Reverse Mortgage

What is a reverse mortgage?

The reverse mortgage is the process where you get a loan against the value of your home. Here, you mortgage your home to the bank and receive money in monthly installments within a fixed time period. 

Why avail a reverse mortgage?

Custom arrangement for senior citizens: Homeowners above 60 can take advantage of the equity value of their residential house to avail of funds through a reverse mortgage. 

A source of additional income: Senior citizens can create a comfortable income as 60-90% of the property’s value is sanctioned as loan.

Save on your taxes: The amount is received in the form of a loan and thus it is free from taxes. 

Eligibility criteria:

Type of resident: Indian 

Minimum age: 60 years for single borrowers 

                            58 years for joint borrowers

Loan tenure: 10-15 years

Loan amount: Minimum 3 lakhs

                           Maximum Rs. 1 crore

What are the documents required for a reverse mortgage?

Property papers: Proof of property ownership and residence, like title deed, property tax receipts, utility bills, etc.

Account statement: Bank account statement of the previous 6 months. 

Income proof: salary slip of last 3 months or IT returns of previous 3 years and Form 16, if applicable. 

Identity proof: Voter ID, PAN, Aadhaar, passport, employee ID card, etc.

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