Reverse Mortgage Calculator

No. You retain full ownership. The lender has a lien, but the title remains in your name. You continue to pay property taxes, insurance, and maintenance.

Yes. When the loan becomes due, the home must be sold. Any remaining equity goes to your heirs. Reverse mortgages are non-recourse, so heirs never owe more than the home is worth.

No. Money received is considered a loan advance, not income. It may affect means-tested government benefits. Consult a financial advisor.

When the borrower passes away, the loan becomes due and must be repaid. The heirs can repay the loan and keep the home, or sell the home to repay the loan. If the home is sold for more than the loan balance, the heirs keep the excess. Reverse mortgages are non-recourse loans, meaning heirs never owe more than the home's appraised value even if the loan balance exceeds it.

No, reverse mortgages are only available on your primary residence where you live for the majority of the year. Investment properties, vacation homes, and commercial properties do not qualify. The property must also meet certain standards of condition, and you must continue to maintain it, pay property taxes, and keep homeowner's insurance throughout the loan period.

The reverse mortgage scheme in India was introduced by the government and is regulated by NHB (National Housing Bank). Under this scheme, senior citizens aged 60 and above can pledge their self-owned, self-occupied residential property to a bank or HFC to receive regular payments (monthly, quarterly, or lump sum). The loan amount depends on the property value, borrower's age, and interest rate. The maximum loan tenure is 20 years, and the borrower can continue living in the property for life. The loan is repaid when the borrower permanently moves out, sells, or passes away.

Several Indian banks and housing finance companies offer reverse mortgage products. State Bank of India (SBI) offers Reverse Mortgage Loan, and its subsidiary SBI Capitals also provides this facility. Other providers include National Housing Bank (NHB)-approved HFCs like LIC Housing Finance, HDFC, Dewan Housing Finance, and Canara Bank. Interest rates for reverse mortgages in India typically range from 8.5% to 11% per annum. The loan amount available is usually 40-60% of the property's market value, depending on the borrower's age and the lender's policy.

The maximum amount you can get from a reverse mortgage in India is determined by the lender based on the property's appraised value, your age, and the current interest rate. Typically, borrowers can access 40-60% of the property's market value. For a property worth 50 lakh, you might receive 20-30 lakh as a lump sum or structured payments. If you opt for monthly payments, the amount is calculated to last for the loan tenure, typically 15-20 years. The older you are, the higher the percentage of property value you can access.

No, a reverse mortgage requires the property to be free of any existing loan or mortgage. If you have an outstanding home loan, you must first repay it in full before you can avail of a reverse mortgage. If the outstanding loan amount is relatively small, you can use the proceeds from the reverse mortgage to pay it off, provided the remaining amount after repayment is sufficient to meet your needs. The property must be owned free and clear or have minimal debt that can be cleared from the reverse mortgage proceeds.

With a reverse mortgage, you retain full ownership and continue living in your home while receiving tax-free payments. You remain responsible for property taxes, maintenance, and insurance. When you sell your home and rent, you lose ownership, face potential rent increases, and may outlive your sale proceeds. A reverse mortgage allows you to stay in your familiar home and neighborhood while unlocking equity, but the loan balance grows over time, reducing the inheritance for your heirs. Selling provides immediate liquidity but requires finding alternative housing.