Draft guidelines for reverse mortgage
The National Housing Bank (NHB) has issued the draft guidelines for reverse mortgage in pursuance of a budgetary announcement made by Union Finance Minister P. Chidambaram to allow senior citizens who own houses to have a monthly stream of income to meet old-age exigencies. Senior citizens can mortgage their residential property to a bank or a housing finance company while retaining the right to stay. The house owners who have crossed 60 years of age will be allowed to seek loan up to 60 per cent of the value of the residential property which they need not repay, says the draft reverse mortgage loan (RML) guidelines issued by the NHB for public comments.
The house owners can opt for monthly, quarterly or annual payments to supplement their income. They may also prefer one time payment or a committed line of credit from the bank or housing finance company (HFC) to be used in times of need.
The income, which a house owner receives by mortgaging his house will go up with revaluation of property undertaken by the banks or HFCs every five years. — PTI
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