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Important Features of a Reverse Mortgage That You Must Know

· Mortgage Loan

Senior citizens who require financial aid for monetary independence, emergency, and well-being can avail a reverse mortgage loan. This is a secured loan, where individuals above 60 years of age, owning residential property can mortgage the same for financial assistance.

Features of reverse mortgage

  • Meet long term financial needs

Borrowers do not need to repay the loan amount. Instead, they can earn a periodic payout which coincides with the property valuation.

  • No restriction on end-use

The reverse mortgage loan offers complete freedom to borrowers to use the loan amount as per their needs and requirements.

  • Age of the property is important

The property must be at least 20 years old and under possession of the prospective borrower to qualify for a reverse mortgage.

  • Reside in your property after opting for a loan

Borrower/s must reside in their properties after availing such a loan.

  • Benefit while repaying the loan

Contrary to most loans, the borrowers need to repay only the market value of the concerned property, regardless of the actual loan amount.


Yet, a major drawback of this loan is that a borrower’s children or family members need to repay this loan after his/her death. Thus, as an alternative option, you can avail loan against property for a lump sum disbursal which can also be used without any end-use restriction.

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