Reverse mortgage scheme extended till life of borrower With an aim to make the reverse mortgage facility more attractive for senior citizens, the 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 of periodical payments from a lender against the mortgage of his/her house while remaining the owner and occupying the house. Earlier, the period of reverse mortgage loan was 20 years from the date of signing the agreement by the reverse mortgagor and the approved lending institution. But, now 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 the facility gets income tax benefits. The scheme is operated by National Housing Bank and other banks and housing finance companies registered with it. As per the amendment, Life Insurance Corporation of India and other insurers registered with the Insurance Regulatory and Development Authority (IRDA) have included as annuity sourcing institutions. Source: I.E. / Oct. 2013
Posted on: Tue, 26 Nov 2013 04:09:11 +0000
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