After retirement, a person has limited sources for living and on the other hand the maintenance expense mainly relating to medical charges increases.

Reverse Mortgage ensures periodic earnings till you are alive. Under this scheme, the house you own is being mortgaged with agencies that in return pay periodic pensions or a lump sum payment as per ones choice. No EMI is payable on this loan. Reverse Mortgage serves the dual purpose of earning-cum-residence. The maximum period of loan is 15 years. The person owns and uses the house during the lifetime. The ownership of the house mortgaged gets automatically transferred to the bank after the death of the person and his/her spouse. However the legal heir can get possession if they repay the loan amount.

Another benefit of the ‘scheme’ is that the receipts are totally tax-free. So it’s suggested to buy a house by encashing all your taxable deposits like PPF, NSC, etc and enjoy the mortgage for 15 years.

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