![]() Individuals availing a reverse mortgage loan can enjoy tax benefits under Section 10(43) of the Income Tax Act, 1961 where the loan amount is exempted from being taxed. It is mandatory for Property owners in Maharashtra to submit the registered agreements for share and sale certificates.Relevant property papers such as development agreement of the builder, conveyance deed in case the property is new, approved plan copy, etc.Occupancy certificate in case of ready to move in property.NOC in case you have availed a loan on the property.Qualification certificate in case you are a CA, Doctor, Lawyer, Architect, etc.Income documents such as copy of form 16, ITR returns for the last two years or salary slip for the last three months.Proof of income such as IT returns for past 2 financial years, salary slip for the last 3 months, TDS certificate, balance sheet and profit, loss account for last 3 years (only for self-employed), etc.If you have availed any loan from any lender, then the account statement for the last 12 months.You can submit documents like the property tax receipts, utility bills, title deed, etc. Proof regarding the ownership of the property.Address proof such as utility bills, Aadhaar, Passport, etc.Identity proof such as voter id, PAN, Aadhaar, passport, etc.Given below is the list of documents you will have to submit in order to avail a reverse mortgage loan from a bank in India: Interest rate will differ from bank to bank.ĭocument required for reverse mortgage loan The borrower has to cover all the home insurance premiums. If the loan is transferred to another lender, usually a 2% fee is charged. The borrower can also pay the loan at any time during the loan tenure, if he wishes to and has enough funds to pay for it. The loan is due and is to be paid in 6 months after the death of the last surviving spouse. The legal heir of the borrower, after the borrower’s death will have the chance to settle the loan along with the interest without having to sell the property. The processing fee charged may vary from bank to bank. The maximum loan amount is Rs.1 crore along with interest.Īmount equivalent to half month’s loan instalment is charged as a processing fee. The property must be free from any impediment or burden. In case the individual has availed a home loan against the concerned property, then it is mandatory to avail an NOC.The age of the mortgaged property should not be more than 20 years old.If the loan is in joint account then one of the spouses must be 60 years and above and the other must be at least 58 years.The residential house must be in his name or jointly with his spouse. ![]() Individuals owning residential house or flat and who is a resident of India and above the ages of 60 can avail this loan.This is an ideal option for senior citizens so that they get regular income. The borrower can choose the frequency of the periodic payment. ![]() The loan amount is then disbursed to the borrower in the form of periodic payment. Home is pledged and the monetary value of the house is decided based on the demand for the house, current property prices and the condition of the house. Reverse mortgage comes in handy when you have a financial crisis and no source of income to fund your financial needs, but you have a house and you can use that house to mortgage and avail loan. The borrower must however pay the property taxes, insurance and other dues. The loan needn’t be paid back till the home is sold or vacated. It is called reverse mortgage because the lender is making payments to the borrower. There are no restrictions on the end use of the funds obtained via a reverse mortgage loan. ![]() The loan payments need not be made until the borrower passes away, sells or moves out of the house. Reverse mortgage loans are a unique type of home loan designed for senior citizens and require no monthly mortgage payments.
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