Earn for Aged Homes

Now a product that allows senior citizens to make a residential property earn for them while they continue to live. That's possible through a 'reverse mortgage' whereby a housing finance company provides a fixed sum to the owner based on the value of a property for a certain period.

Dewan Housing Finance Corporation Limited, a mortgage lender to the lower and middle income segment, is the first to launch a reverse mortgage product in the market, following issue of regulations a few months ago by National Housing Bank, the regulator of housing finance companies.

Reverse mortgage provides a regular source of income for senior citizens for 15-20 years. The amount is paid every month to the owner of a property and the interest there on is recovered from the sale of the property after the death of the owner and his/her spouse.

The difference between the sale price and the amount due to DHFL is passed on to the legal heirs of the borrower. The rate of interest on reverse mortgage is 12 per cent, said Shivkumar Mani, head -marketing at DHFL.

The DHFL scheme, called Saksham, is meant to provide and supplement monthly income for senior citizens.

It is offered to retired people above the age of 60 years who own property and have been living in it for at least one year.

Saksham gives the liberty to the customer and his/her spouse for maintaining and living in the property as long as they are alive, without the fear of having to vacate the property even after the tenure of the reverse mortgage expires.

Saksham gives the option to the legal heir to re-possess the property if intended after the demise of both the customer and his/her spouse.

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