Question 1

Is reverse mortgage payout taxable in India?

Accepted Answer

Reverse mortgage loan disbursements are generally treated as loan receipts, not taxable income, but users should verify with a tax advisor.

Question 2

Who is eligible for reverse mortgage?

Accepted Answer

It is typically available to senior citizens owning a self-occupied residential property, subject to bank policy and property valuation.

Question 3

Do heirs lose the property?

Accepted Answer

Heirs may repay the loan and retain the property, or the lender may recover dues through sale as per loan terms.

Question 4

Why is payout lower than normal loan EMI?

Accepted Answer

Because the bank must account for interest accumulation over time and keep total debt within the eligible property-backed loan limit.