With an aim to make
the reverse mortgage facility more attractive for senior citizens, the central
government has extended the period of the scheme from 20 years to the life of
the person seeking funds from banks by pledging his residential property.
This has been done by
amending the Reverse Mortgage Scheme, 2008, which enables a person above the
age of 60 years to avail himself of periodical payments from a lender against
the mortgage of his / her house while remaining the owner and occupying the
home.
Earlier, the period
of reverse mortgage loan was 20 years from the date of signing the agreement by
the reverse mortgagor & the approved lending institution.( Bank / Housing
Finance Firms)
Income Tax Benefit..
But, now the period
has been extended to ‘the residual life time of the borrower,’ said a
notification by the Central Board of Direct Taxes (CBDT).
Persons availing
themselves of the facility get certain income-tax benefits.
As per the scheme, on
the borrower’s death or / on the borrower leaving the house property
permanently, the loan is repaid along with accumulated interest, through sale
of the house property.
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