Reverse Mortgage Scheme- After retirement, most people’s biggest concern is where will they get their regular monthly salary? But now, your home can provide you with monthly income. The good thing is that you don’t have to sell your home or vacate it. After retirement, most people’s biggest concern is where will they get their regular monthly salary?
After the job ends, the salary stops, and in such a situation, many people become dependent on their savings or children. But now, if you own your own home, that same home can provide you with a pension-like income every month, and that too without selling or leaving it. This is possible through the Reverse Mortgage Scheme, which is specifically designed for senior citizens above 60 years of age.
What is Reverse Mortgage Scheme?
Typically, when a person takes out a home loan from a bank, they pay EMIs to the bank. However, with a reverse mortgage, the opposite is true. The bank pays the homeowner. This means the bank mortgages your home, but you can live in it for life. The bank pays you a fixed monthly payment, which becomes a kind of pension.
How to get money?
The bank first determines the market value of your home and then determines the amount of loan you can receive based on that. This amount can be paid as a lump sum or in monthly installments.
For example, if your home is worth Rs 50 lakh, the bank may provide you with an income of Rs 20,000 to Rs 30,000 per month. This amount depends on your age, the property’s value, and the bank’s terms. Under this plan, there’s no need to repay the loan as long as the owner is alive. After the owner’s death, the bank sells the home to recover its money. However, heirs, such as children, can reclaim the home by paying the remaining balance. If the home’s value exceeds the loan amount, the remaining amount is returned to the heirs.