Benefits of Reverse Mortgage for Senior Citizens



No matter how well senior citizens have invested their money in the old age, additional cash flow is more than welcome. Amongst the many senior citizen driven schemes that exist in India, reverse mortgage is a lesser-known one. Let’s understand this scheme in detail and how senior citizens can benefit from it.

What is Reverse Mortgage?

 In a word, a reverse mortgage is a loan. A homeowner who is 62 or older and has considerable home equity can borrow against the value of their home and receive funds as a lump sum, fixed monthly payment or line of credit. Unlike a forward mortgage—the type used to buy a home—a reverse mortgage doesn’t require the homeowner to make any loan payments.

 Benefits of Reverse Mortgage

 New Source of Income

 Reverse mortgage serves as a supplementary income source other than traditional investment options such as bank fixed deposits, national savings certificate, post office scheme, etc.

 All-Purpose Income

 Senior citizens can use reverse mortgage income for any purpose – household expenses, medical bills, travel, debt payment and any daily need. There is no restriction on how this income should be used.

 Better Use of Property

 Usually, income from owned home property can be earned only when it is rented or sold off. Reverse mortgage allows senior citizens to earn money on it their home while continuing to reside in it. Even after the death of a senior citizen who owns the house, his or her spouse can stay in the house. It is a win-win situation. Read More



Article Source -> Business Standard

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