FAQs

Who is eligible? A homeowner who is above 60 years of age is eligible for reverse mortgage loan. It allows him to turn the equity in his home into one lump sum or periodic payments as mutually agreed to by the borrower and the banker. The property should be clear from encumbrances and should have clear title of the borrower. What about repayment? No repayment is required as long as the borrower lives. Borrower should pay all taxes relating to the house and maintain the property as his primary residence. What about amount eligibility? The amount of loan is based on several factors: borrower’s age, value of the property, current interest rates, and the specific plan chosen. Generally speaking, the higher the age, the higher the value of the home, and the more money is available. The valuation of the residential property is done at periodic intervals and it shall be clearly specified to the borrowers upfront. The banks shall have the option to revise the periodic/lump sum amount at such frequency or intervals based on revaluation of property. Married couples will be eligible as joint borrowers for financial assistance. In such a case, the age criteria for the couple would be at the discretion of the lending institution, subject to at least one of them being above 60 years of age. How is repayment of annuity/loan done on death? The loan shall become due and payable only when the last surviving borrower dies or would like to sell the home, or permanently moves out. On death of the home owner, the legal heirs have the choice of keeping or selling the house. If they decide to sell the house, the proceeds of the sale will be used to repay the mortgage, with the remainder going to the heirs.