Reverse Mortgage for Seniors

Reverse Mortgage is to a large extent a solution for those senior citizens who do not have a substantial source of liquid assets to depend on. Through Reverse Mortgage, their homes can be virtually transformed into a steady source of cash flow, till the time of their death, giving them the financial independence to live a comfortable life with dignity.

To tackle the growing financial insecurity faced by many senior citizens post retirement, HelpAge India and National Housing Bank (a housing finance regulator) joined hands with the hope to provide a solution for them through Reverse Mortgage, as per which the payment stream is “reversed”, as compared to conventional mortgage. The lending institution makes periodic payments to the senior citizen or borrower against their property, thereby securing their financial situation during their lifetime. Counseling Centres have been opened in Delhi, Hyderabad, Kolkata & Chandigarh with staff especially trained to provide details about the scheme.

The maximum period for a Reverse Mortgage loan is 15 years. On the death of the senior citizen/s availing Reverse Mortgage or on permanent vacating of the residential property, the loan is repaid with the interest accumulated, by selling off the property or alternatively their heirs can repay the loan.

The loan will be extended by primary lending institutions like scheduled Banks, Housing Finance Companies registered with NHB. The amount of loan will depend on the market values of the residential propriety of the senior, age and prevalent interest rate.

Reverse Mortgage offers a ray of hope to senior citizens during the second innings of their life.