OPPORTUNITIES IN INDIA REVERSE MORTGAGE SOCIAL AWARENESS PROGRAMME IIFT DELHI

Size: px
Start display at page:

Download "OPPORTUNITIES IN INDIA REVERSE MORTGAGE SOCIAL AWARENESS PROGRAMME IIFT DELHI"

Transcription

1 REVERSE MORTGAGE OPPORTUNITIES IN INDIA SOCIAL AWARENESS PROGRAMME IIFT DELHI MENTOR: Anupama Datta Deputy Director (Policy Research and Development) Helpage India SUBMITTED BY : Sathiyanarayanan M (44) Varun Bajla (56) Yukti Bhanuka (114) IIFT Delhi MBA (IB)

2 Acknowledgements The NGO awareness project marks the end of an exciting and enlightening phase of our life. A lot of time and effort has gone into this project and a number of people have contributed in some way or the other. We would like to particularly thank Madam Anupama Datta for her constant guidance and support throughout this endeavor. She has always been there right from the start and has been instrumental in giving us sense of direction throughout this study We extend our heartfelt gratitude to the management of IIFT and Helpage India for the immense support throughout the project. 2

3 Table of Contents Reverse Mortgage Industry in India...5 Introduction...5 Reverse Mortgage...5 Types of Reverse Mortgage Products...6 Pricing of Reverse Mortgage Products...6 Significance of Reverse Mortgage System in India...6 Risk inherent in the Reverse Mortgage Product...7 Risk Mitigation...8 Why is it Not Clicking in India?...9 Brief about Home Reversion Schemes in the UK...10 Cash Reversions:...10 Income Reversions:...10 Stepped Reversions:...10 Brief about Home Reversion Schemes in Australia...11 Sale and lease model...11 Sale and mortgage model...11 RELEVANCE TO INDIA MARKET...12 SWOT Analysis...13 Strengths...13 Weaknesses...13 Opportunities...14 Threats...14 Market Potential in India...14 India-specific Characteristics of Relevance to RM...15 Old Age Population

4 Current Sources of Income...17 Market Potential...18 Reverse Mortgage Scores...18 Potential segments for Reverse Mortgages...19 Constraints for marketability of Reverse Mortgages...21 Regulatory Mechanism in India...21 Conclusions & Suggestions...22 References...24 Website...24 Texts

5 Reverse Mortgage Industry in India Introduction With the growth of the ageing population, old age security has become one of the prime concerns for the Indian government. The PFRDA Bill and other such measures provide a solid ground for this assumption. Even the establishment of IIMPS for micro pensions for the people of the unorganized sector is in the same direction. All these measures are good for people who are into their working life and thus can save for their retirement now. But one of the segments which have been left is the one who are in their retirement phase and who may not have enough cash to sustain their life. Pension by Central and State Governments are not enough to sustain them. These people may not have enough income or saving in cash but may have assets which may not be providing income. To overcome this problem, The National Housing Bank, apex body on housing finance in India, came out with its guidelines on reverse mortgage in early Some of the public sector banks and one private housing finance company have already come up with their products and the market in India started growing. Reverse Mortgage A reverse mortgage (or lifetime mortgage) is a loan available to senior citizens. Reverse mortgage, as its name suggests, is exactly opposite of a typical mortgage, such as a home loan. A reverse mortgage is a loan available to seniors and is used to release the home equity in the property as one lump sum or multiple payments. The homeowner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (e.g., into aged care) The analysis of definition provides some basic features of reverse mortgage products. These are The loan is available only to senior citizens owning a home The loan can be in the form of Lump-sum or multiple payments like annuity etc Homeowner does not have obligation to repay the loan till the house is his prime residence The payback is done once the owner dies or leaves the house. This is done though selling the house and recovering the loan through its proceeds. Thus a home owner going for reverse mortgage may take his payment in the following form. A lump sum at the beginning (can be used for home improvement health expenses etc) Monthly payments till a fixed term Monthly payments as a life-long annuity 5

6 Establishing a credit-line with or without accrual of interest on credit balance A combination of the above Some lenders have come out with plans different from the above to suit the requirements of the borrowers. Types of Reverse Mortgage Products Home Reversion / Sale and Lease Back- The homeowner sells the house but keeps the right to live in the house till the time it is his prime residence. The amount could be used for home improvement, any other health need etc. Interest-only Mortgage- The borrower takes lump sum and pays only interest during his lifetime. The principal is recovered through the sale of the home Mortgage Annuity/ Home Income- The loan is used to purchase an annuity for the homeowner. The advantage is that even if the homeowner moves out of the home, the annuity will continue till his death Shared Appreciation Mortgage- This provides loans at a below market interest rate.. In return, the lender gets a pre-agreed share in any appreciation in the property value over the accumulated value of the loan. Pricing of Reverse Mortgage Products The various considerations which needs to be taken while pricing a product of this nature are Age of the borrower-if it is a joint borrowing then the age of the younger borrower is considered. Value of the property- Then value of the property plays a major role in determining the price for an RM product Expected Interest Rate- As the product resembles the normal annuity product in some sense, the current and expected interest also plays a major role in pricing the product Significance of Reverse Mortgage System in India The society in India has under-gone huge changes in last 4-5 decades. Nuclear family has replaced the joint family system. The system of family supporting the older people has gone. As mentioned earlier the public pension system has not been able to provide an alternate support to old people. This condition leaves the older people in jeopardy. They face following issues Outliving their retirement income Depending on their children to help pay expenses 6

7 Getting sick and having no way to pay the expenses Not being able to guarantee an income for their spouse after they are gone Being able to live as long as they like in their own home Looking at the current situation, the needs for a product which can help these people to solve some of these problems is always a welcome step. Reverse mortgage or equity release products tries to answer all these problems. Every Indian, irrespective of its income level tries to build a home for himself during his working life. Reverse mortgage will give him/her an opportunity to generate income from that very home. As the ownership remains with the borrower, he can transfer the home to his successors also if the later agrees to pay the loan amount. Such a product relieves the pressure on government also to provide old age security and thus government also needs to support such initiative. Risk inherent in the Reverse Mortgage Product Any financial product involves some risk and reverse mortgage is no exception. The lender faces many type of risk for this product. Some of these risks are Longevity Risk- The lender has to provide the payment upfront either lump sum or installments as the case may be but gets his money back only when the borrowers dies or move into another residence. As we are aware that the life expectancy of people is increasing, the risk of late recovery of loans is a big risk for the lenders. The risk is aggravated by the fact that with the payments from reverse mortgage, the lifestyle of the borrower gets better which may become one of the contributors in the improvement of longevity. The longevity risk is higher for reverse mortgage where the payment is continued till the death of the borrower since not only the recovery gets delayed but also the lender has to make payments for a longer time, Interest Rate Risk- The payments to the borrower in case of a reverse mortgage is fixed, either for a term or lifetime but the cash flows for the lender may not be fixed and are dependant on the interest rate market. Thus the lender runs the risk that the interest rates in the market may move in the opposite direction of that the lender anticipated. Market Risk (Property Value Risk)- The lender in a reverse mortgage can claim back his loan only from the property on which the loan has been granted. He does not have recourse to any other asset of the borrower. If the sales proceeds of the home are not sufficient, the lender cannot clam the balance from the heirs of the borrower. This gives rise to the risk of adverse 7

8 movement in property market which affects the profitability of the product. Though this risk can be diversified with increasing the geographical reach of the operations of the lender but the risk still remains Early Redemption Risk- Some of the reverse mortgages loans may give the borrower an option of repay the loan at any point of time. This leads to another risk for the lender of early redemption as the borrower will pay back the loan when it is most beneficial to him which in most cases does not coincide with the interests of the lender. In case the lender has securitized the loan, which in most of the cases it is, the risk becomes higher as the lender cannot closer its position in this case. Condemnation/ Sovereign takeover of the property by a government agency. The asset available to the lender is the house and if there are changes like takeover of property by the government for development purposes etc, the lender is the looser But as spillover/multiplier effect of releasing the equity value of houses is very large as total household stock in a country ranges between 100% and 150% of GDP, it is good if home equity conversion products become a success in India as it can provide a strong dynamism to the economy by unlocking the illiquid wealth represented in India s stock of owned houses. Therefore, this market should be looked at favorably both by the regulators and market participants. Risk Mitigation Risk mitigation is the key for the success of any financial product including reverse mortgage. Some of the risk mitigation techniques which the providers can apply to reduce the risk on their books Proper eligibility criterions- The first mitigation of risk can be done at the time of providing loans. This can be done through proper verification of the title of the property, age of the borrower; his/her credit analysis etc. This reduces the risk of default by the borrower Variable interest rates loan as compared to fixed interest rate loan- To avoid interest rate risk, the lender can go for variable interest rates based on some market benchmark like MIBOR. This will also reduce the risk of Pre-payment as the borrower will not have interest arbitrage on prepayment of the loan Proper analysis of mortality trends- As the product has significant longevity risk, the lender can do a detailed mortality trend analysis on a macro level and also in the market where it is operating. Geographical diversification- the lender can look at spreading the business across the country by promoting the product in secondary and tertiary cities also so that the law of large numbers may work properly and if the provider has a bad experience in one market, it can be compensated with good experience in other cities 8

9 Develop the product for lower age groups- The lender can develop home equity conversion mortgages for all households and not just for elderly. This will significantly reduce loan to value ratio and that will take care of many of the risks inherent in the product. In the Repayment schedule, some default conditions or changes that affect the security of the loan for the lender that can make reverse mortgages payable should also be added, like: Declaration of bankruptcy; Donation or abandonment of the house; Condemnation/ Sovereign Takeover of the property by a government agency Why is it Not Clicking in India? Till now, less than 500 applicants have availed this loan in India since its inception in 2007, a senior bank official, who did not wish to be identified, said. The reasons for the model not taking off in India are manifold. From an emotional attachment with one s house to real estate price correction; from an absence of clear guidance against legal complications to inadequate marketing, the plan has been unable to meet the expectations of financial institutions. Reverse mortgage is a plan through which senior citizens can avail loans from either banks or other financial institutions by mortgaging one s home. If a senior owns a house and has a mortgage on the house, he might get a reverse mortgage to pay off the existing loan and then have some money left over to take care of his expenses for the rest of his life. The homeowner could get that as a lump sum or a line of credit, and wouldn t have to pay it back until he moved or died and the house was sold. The banks can sell off the property to realize the loan amount. However, there is a provision that the legal heirs can acquire the property back by paying off the loan to the bank. Dewan Housing, which is one of the largest housing finance companies, has been able to sell only 4-5 reverse mortgage loans during the last two years. Two large financial institutions, HDFC, which incidentally is one of the largest home loan lenders in the country, and Kotak Mahindra do not have reverse mortgage in their portfolios. In fact, several other players in the segment are also facing difficulties in selling reverse mortgage 9

10 products. Says Sujan Sinha, senior V-P and head of retail liabilities, Axis Bank, The product has not done well. In India, you can count the number of cases of reverse mortgage on your finger tips. There are some very basic reasons that have worked against this product which has taken off rather well in international markets. The psyche of Indians does not make them comfortable with the idea of selling their home. This could be perhaps because better awareness had not been created about the product. Secondly, the Indian banking industry caps the available loan amount at Rs 50 lakh (Rs 5 million), instead of providing for an equitable percentage of the property's value, and limits the loan period to a tenure of 15 years. The product is still evolving and may take on new dimensions depending on how the banks wish to present its consumer appeal. Brief about Home Reversion Schemes in the UK The following are the types of Home Reversion Plans sold in UK Cash Reversions: In the market at present most reversions are sold as cash products, i.e. the customer gets the value of the reversion paid over as a single cash sum at the outset of the scheme. Most lenders offer cash reversions with the optional purchase of an annuity if required Income Reversions: At present income reversions are not common as it is generally assumed that an annuity could be bought with the proceeds of a cash reversion. For the client an income reversion provides a guaranteed level of income for life and for the reversion company there will be an improvement in the funding and cash flow position. Stepped Reversions: With a stepped reversion the customer can take their benefits from the scheme either as a lump sum or as a series of payments and the amount that is repaid is expressed as a proportion of the property sale proceeds. The proportion starts as the proportion of the initial advance to the initial property value and steps up'' by a fixed percentage each year, adjusted for further payments as they are made. This product overcomes the main criticism of reversions, that the schemes are very expensive on early death. 10

11 Brief about Home Reversion Schemes in Australia In Australia, two types of House Reversion Schemes are available: Sale and lease model In the sale and lease model, the title to the property actually passes to the provider at the time the parties enter into the contract and the property is leased back to the consumer for the remainder of his or her life at a nominal rent. The provider pays the purchase price to the consumer in the form of a lump sum payment, in monthly payments over a period of between five and 30 years, or through a combination of the two. It is possible for the consumer to protect their interest in the property by lodging a caveat. The provider assumes responsibility for rates, maintenance and other outgoings upon title passing to it. The provider may then on-sell the property to investors who acquire the title subject to the lease to the consumer, which is acknowledged by deed. The investor then assumes responsibility for payments to the consumer as well as for paying rates and other outgoings, and maintaining the property. Sale and mortgage model The sale and mortgage product is structured by two documents, a sale of land contract and a mortgage. Under the contract of sale the consumer sells a percentage of the property to the provider. The provider pays the consumer an agreed amount on the date the contract is signed. The title to the property remains in the consumer s name. To protect the provider s interest in the property, the consumer is required to give the provider a mortgage over the property, the terms of which prohibit the consumer from dealing with the property without the provider s consent. The contract may oblige the consumer to: 11

12 pay all outgoings keep the property insured maintain the property in a reasonable state of repair, and Obtain the purchaser s consent before selling, leasing or renovating the property. The sale and mortgage product that is currently available in Australia is solely distributed by employees of the one provider with whom the house reversion company has an agreement. RELEVANCE TO INDIA MARKET Social Security Scenario The share of the old persons (age 60 and above) to the total population in India is expected to rise from 6.9 in 2001 to 12.4% in The growth of this segment of population is causing tremendous pressure on the economic system. Government of India has already recognized the urgency and initiated measures which can address income and security needs of the old age persons. Pension reforms, amendments to housing policies, National Old Age Pension scheme and Maintenance & Welfare of Senior citizens Bill, 2007 are some steps in this direction. But, Government initiatives are sometimes constrained by disparities in income and social characteristics of the population and the result, no one size fits all. Social responsibility has demanded on the public sector and private sector enterprises to launch financial products which can complement the welfare schemes of the government, so that the Indian Diasporas have a well orchestrated social security system. Thus, Pension, Housing Finance and Reverse Mortgage products from financial institutions have a major role in meeting the growth objectives of the business community and the welfare objectives of the Government. Public participation in these 12

13 initiatives will not only cause improvement in the standard of life but has a large positive impact on the national economy. SWOT Analysis Strengths The senior citizens are entitled to regular cash flows at their choice - monthly, quarterly, half yearly & annually. No income criteria No loan servicing or repayment required during the lifetime of borrower & spouse. If the borrower dies during the period, the spouse will continue to get the loan amount for 15 years. No tax on the regular cash flows. The borrower & their spouse can continue to stay in the house till both die. Heirs of the borrower will be entitled to get the surplus of sale value of the property. Borrower/heir can get mortgage released by paying loan with interest without having to sell property at any time. Prepayment of loan is allowed. NHB to guarantee obligation of banks/housing finance companies to pay the committed loan amount as regular sums over a period of time. Reassessment of property value will be done periodically or at least once every 5 years. Borrower can cancel the mortgage within three days of approval/disbursement, subject to return of loan amount. Weaknesses This loan product has a maximum tenure of only 15 years. Basis of property valuation is not clear. Requirement of clear title to property in the name of the borrower. Three days period to cancel loan is too less. 13

14 Various fees to be added to borrowers liability, which can be quite substantial. Opportunities Partial substitute for a social security scheme for senior citizens. Longevity increasing with nuclear families. Most Indians have strong preference for own home. Therefore many eligible citizens may opt for the scheme. Quantum of loan can increase favorably for borrower on revaluation of property. Threats Property valuations are ambiguous. There is a non-recourse guarantee. Rate of interest is at the discretion of lender. Any increase in the rate, if floating, will increase the burden of the borrower. Lender has discretion to raise loan amount on revaluation. However, if it does not do so, borrower doesn't get loan according to proper value of property. Lender has right to foreclose loan by forcing sale of property if borrower doesn't pay for insurance, property taxes or maintain & repair house. Can lead to further harassment. The norms need to be fine-tuned & made watertight so that these borrowers are not harassed or short-changed in their old age. Market Potential in India Age Group/Sex-wise Population in India (2001 Census) Age- Total Rural Urban group Person Male Female Person Male Female Person Male Female 14

15 India-specific Characteristics of Relevance to RM There are no universal old age social security related benefits. Only about 10% of the active working population are covered by formal schemes. This would substantially enlarge the potential target market for RM: house-rich, cash-poor. A much lower proportion of urban households, and by implication, less scope for RM. A much larger proportion of elders co-living with their family members of subsequent generations and hence less scope for RM A possibly stronger bequeath motive, reducing the scope for RM. A possibly higher real rate of appreciation of real estate and housing prices, making RM more attractive to the lender. Widespread under valuation of real estate properties to accommodate transactions involving unaccounted money and evasion of taxes on property and real estate transactions Complexity, variety and location specific variations in types of home ownership: Benami holdings/ Irrevocable power of attorney Leasehold/ freehold Land use conversion regulations Floor space regulations Rent/ tenancy controls Disposal of ancestral property 15

16 Absence of competitive suppliers for immediate life annuity products. This, in turn, is a consequence of Lack of data on old age mortality rates Lack of long-term treasury securities for managing interest rate risks of annuity providers The fledgling nature of the secondary markets for mortgage and securitization of mortgage loans India specific legal and taxation issues License/ Permission required under insurance/ banking regulation for offering RM Income tax treatment for RM lender and borrower Capital gains on property Reporting and provisioning by the lender as per banking/ insurance regulation Seniority of RM claims vis-à-vis other secured lenders Status of RM loan in case of insolvency Old Age Population Though the Indian population is still comparatively young, India is also ageing. Some demographic projections for India indicate that The number of elderly (>60 yrs) will increase to 113 million by 2016, 179 million by 2026, and 218 million by Their share in the total population is projected to be 8.9 % by 2016 and 13.3% by The dependency ratio is projected to rise from 15% as of now to about 40% in the next four decades The percentage of >60 in the population of Tamil Nadu and Kerala will reach about 15% by 2020 itself! Life expectancy at age 60, which is around 17 yrs now, will increase to around 20 by 2020 State-wise Percentage Share in Total Population of Persons Age 60+ by Sex and Residence in India (2001) Total Rural Urban States/UTs Persons Males Female Persons Males Females Persons Males Female Kerala

17 West Bengal Tamilnadu Pondicherry Manipur* Tripura Punjab Lakshadweep Goa Orissa Current Sources of Income A National Sample Survey of the senior citizen reported that about 5% of them lived alone, another 10% lived with their spouses only and another 5% lived with relatives/ non-relatives, other than their own children. The remaining (80%) lived with their children (Rajgopalan, 2006). In other words, coresidence with children and other relatives is predominant. As of 1994, the estimated percentage among the elderly, dependent on various sources of income is given in Table below. The data shows that they were dependent primarily on their own work and transfers including from their children. Source Men Women All elderly Pensions/Rent 9-10% 5% 7-8% Work 65% 15% 40% Transfers 30% 72% 40% 17

18 The above factors project that Reverse Mortgage is made for India. It is a bankable scheme that takes away the sting from the existing defined-contribution pension plans. RML takes care of two simultaneous risks associated with these plans for the savers, first is insufficient returns earned and the second is unpredictable longevity of beneficiaries. Market Potential Considering the above facts in mind, if we assume that about 20% of the eligible elderly population will take the advantage of RML, the total number of loans would be of the order of 18 Million in 2010, 28 Million by 2016 and 44 Million by If the average eligible amount of one loan is taken to a conservative sum equal to Rupees 1 Million per borrower, the total RML market size will become in the range of Rupees 20 to 25 Trillion (About half a Trillion in US Dollar terms). This is a huge market and cannot be ignored in terms of opportunity by the lenders and also social security measure by the borrowers and the Government of India. Reverse Mortgage Scores Rank States/UTs The Reverse mortgage Score 1 Andhra Pradesh Gujarat Delhi Punjab Karnataka Assam Orissa Kerala Bihar Uttar Pradesh

19 11 Maharashtra West Bengal Tamil Nadu Madhya Pradesh Tripura Jammu & Kashmir Potential segments for Reverse Mortgages Middle Class segment: An average middle class person would have utilized all his savings to purchase house so that later in his life he can fall back upon the property for his sustenance. Providing a start-up in living or financing education or performing marriage of the dependents is still the responsibility of some elderly population. Health care priority segment: Old age persons may need to incur high costs for health maintenance. Current income levels may not be sufficient to take lump sum costs. Besides, these people have low credit worthiness. Health insurance is not wide spread and even where the health insurance schemes exist; getting cashless service is a difficulty. The only way out in this case is to have a credit line available at the shortest call. Small Business segment: There is a remote possibility of non-salaried segments of population to have personal pension schemes. These people who may be owners of small businesses may not have any source of regular income after they retire from active business or after handing over business to their heirs. People who can afford comfort spending: A study conducted by Technical Committee on Population, Planning Commission shows that 52% of the elderly people in urban areas are living alone. A large segment of this population will be on the look out for a relaxed life style. They may also be having none to bequeath their property, so they may intend to spend the equity in their house to meet the expenses in increased standard of living. 19

20 Parents of Non-Resident Indians (NRIs): This is a growing segment of old age parents living alone in India, while their children make a living abroad. Children would have no intention of coming back to India. In this case, utilizing house equity to enhance their living comfort is better than handing over property issues to the children. Also, increasing satellite families, migration of children to urban and industrial areas leaving aged parents at villages are few more reasons of aged parents living alone. Low Current Incomes Relative to Desired Standard of Living: Amongst such households, we are looking for those whose current levels of income are insufficient to afford their desired standard of living. The salary replacement rates suggested in the literature, for maintaining the same standard of living after retirement as before, is around 60%. This implies a pre-retirement take home salary or income (after-tax) of around Rs a month. A potential RM borrower would be one who had such a pre-retirement income but no substantial pension benefits. Therefore, he would have been employed in the private sector or self-employed. Long Tenure at Current Home: RM is attractive to a borrower especially when he values continued stay in his current residence and plans to do so for a long term into the future. This is likely when he has already stayed in his current home for a relatively longer period- say a minimum of 10 years. Additional indicators for such a desire could be a person currently resident in one s home town/ state. Lack of Other Supports: If such an individual is living alone, as in the case of a widower or widow, RM can make a substantial contribution to his/ her standard of living. Alternatively, the next generation may be living far away, either in India or abroad. Independence and Quality of Life: A potential RM borrower must be an elderly person who values his financial independence. He must be interested in maintaining his desired quality of life rather than curtailing consumption for lack of current cash income. This implies he must be mentally prepared to consider borrowing in old age, let alone through innovative financial products like RM. This implies certain minimum education and exposure to financial savings/ assets/ markets. 20

Reverse Mortgage- Growing Market in India

Reverse Mortgage- Growing Market in India Reverse Mortgage- Growing Market in India By Singhal, Saket & Jain, Amit Abstract With National Housing Bank coming up with the guidelines for Reverse Mortgage Products and some banks offering the product

More information

PROPERTY PAYS FOR ITS OWNER: REVERSE MORTAGAGE..

PROPERTY PAYS FOR ITS OWNER: REVERSE MORTAGAGE.. PROPERTY PAYS FOR ITS OWNER: REVERSE MORTAGAGE.. Getting into old age without proper financial support can be a very bad experience. No regular incomes, with rising cost of living can make life tough;

More information

REVERSE MORTGAGE LOAN SCHEME FOR THE SENIOR CITIZENS OF DELHI

REVERSE MORTGAGE LOAN SCHEME FOR THE SENIOR CITIZENS OF DELHI REVERSE MORTGAGE LOAN SCHEME FOR THE SENIOR CITIZENS OF DELHI Concept of Reverse Mortgage Loan (RML). DCHFC proposes to introduce the new scheme of Reverse Mortgage loan announced in the Budget speech

More information

REVERSE MORTGAGE LOAN (RML): OPERATIONAL GUIDELINES (Awaiting approval and notification of the Government of India)

REVERSE MORTGAGE LOAN (RML): OPERATIONAL GUIDELINES (Awaiting approval and notification of the Government of India) May 13, 2008 REVERSE MORTGAGE LOAN (RML): OPERATIONAL GUIDELINES (Awaiting approval and notification of the Government of India) Introduction Senior Citizens are an increasing component of the Indian society

More information

National Housing Bank REVERSE MORTGAGE LOAN (RML): OPERATIONAL GUIDELINES

National Housing Bank REVERSE MORTGAGE LOAN (RML): OPERATIONAL GUIDELINES REVERSE MORTGAGE LOAN (RML): OPERATIONAL GUIDELINES Introduction Senior Citizens are an increasing component of the Indian society and dependency in old age is increasing in the country. While on the one

More information

A monthly publication from South Indian Bank. www.sib.co.in. To kindle interest in economic affairs... To empower the student community...

A monthly publication from South Indian Bank. www.sib.co.in. To kindle interest in economic affairs... To empower the student community... To kindle interest in economic affairs... To empower the student community... Open YAccess www.sib.co.in ho2099@sib.co.in A monthly publication from South Indian Bank Experience Next Generation Banking

More information

Analytical study of inherent risk in reverse mortgage loans

Analytical study of inherent risk in reverse mortgage loans 2016; 2(3): 12-16 ISSN Print: 2394-7500 ISSN Online: 2394-5869 Impact Factor: 5.2 IJAR 2016; 2(3): 12-16 www.allresearchjournal.com Received: 05-01-2016 Accepted: 06-02-2016 Research Scholar at Pravara

More information

Research Paper. Reverse Mortgage. Prof. Sachin Napate Asst. Professor (Finance) 89/2-A, New Pune Mumbai Highway, Tathwade, Pune 4110336 ABSTRACT

Research Paper. Reverse Mortgage. Prof. Sachin Napate Asst. Professor (Finance) 89/2-A, New Pune Mumbai Highway, Tathwade, Pune 4110336 ABSTRACT ISSN No-2231-5063 Research Paper Vol.1,Issue.X/April 2012pp.1-4 Reverse Mortgage Prof. Sachin Napate Asst. Professor (Finance) 89/2-A, New Pune Mumbai Highway, Tathwade, Pune 4110336 ABSTRACT This paper

More information

Reverse Mortgage Scheme November 2014 REVERSE MORTGAGE LOAN

Reverse Mortgage Scheme November 2014 REVERSE MORTGAGE LOAN REVERSE MORTGAGE LOAN - Source National Housing Bank Website. Reverse mortgage is a financial product that enables senior citizens (60+) who own a house to mortgage their property with a lender and convert

More information

(in Indian scenario) Authors: (1) Dr.R Venkataraman, Professor, Presidency College, Bangalore

(in Indian scenario) Authors: (1) Dr.R Venkataraman, Professor, Presidency College, Bangalore Reverse mortgage: Bringing smiles on wrinkled faces (in Indian scenario) Authors: (1) Dr.R Venkataraman, Professor, Presidency College, Bangalore Abstract (2) Archana Mishra, Asst. professor, Presidency

More information

Reverse Mortgage. Loan as proportion of Assessed Value of Property

Reverse Mortgage. Loan as proportion of Assessed Value of Property Reverse Mortgage By Paul, Divya & Chakrapani, Jyoti Introduction: Reverse Mortgage is a product that will allow senior citizens to avail themselves of funds by mortgaging their residential property. The

More information

Direct Tax (Article) Reverse Mortgage Scheme your property pays you a regular income

Direct Tax (Article) Reverse Mortgage Scheme your property pays you a regular income Direct Tax (Article) Reverse Mortgage Scheme your property pays you a regular income The information contained herein is of a general nature and is not intended to address the circumstances of any particular

More information

The Reverse Mortgage A FINANCIAL SOLUTION TO ELDERS. By Nandhavanam www.icaremylife.com

The Reverse Mortgage A FINANCIAL SOLUTION TO ELDERS. By Nandhavanam www.icaremylife.com The Reverse Mortgage A FINANCIAL SOLUTION TO ELDERS By Nandhavanam www.icaremylife.com Concept of Reverse Mortgage During the earning period an individual s major earnings goes towards housing loan repayment.

More information

PERCEPTION OF INSTITUTIONAL RESPONDENTS AS TO REVERSE MORTGAGE SCHEME

PERCEPTION OF INSTITUTIONAL RESPONDENTS AS TO REVERSE MORTGAGE SCHEME CHAPTER- VI PERCEPTION OF INSTITUTIONAL RESPONDENTS AS TO REVERSE MORTGAGE SCHEME 6.1 Introduction This section analyses the responses to questions asked by researcher during interviews with officials

More information

A PRODUCT FOR SENIOR CITIZENS A TECHNICAL PRESENTATION for discussion purposes only February, 2007 For restricted circulation 1 REVERSE MORTGAGE Reverse Mortgage is a mortgage loan for Senior Citizens

More information

Can Equity Release Mechanisms fund long term care costs? Desmond Le Grys

Can Equity Release Mechanisms fund long term care costs? Desmond Le Grys 2001 Health Care Conference Can Equity Release Mechanisms fund long term care costs? Desmond Le Grys 1 Introduction 1.1 Scope This paper attempts to explain why equity release products have rarely been

More information

A STUDY OF REVERSE MORTGAGE SCHEME IN INDIA

A STUDY OF REVERSE MORTGAGE SCHEME IN INDIA A STUDY OF REVERSE MORTGAGE SCHEME IN INDIA A Project Report Submitted to the In partial fulfillment of the requirements for the award of the Degree of MBA IN [Finance] SUBMITTED BY NAME :.. ENROLLMENT

More information

Nationwide Mortgage Licensing System #222955

Nationwide Mortgage Licensing System #222955 Nationwide Mortgage Licensing System #222955 Senior Concerns Is your mortgage paid off? Is your Social Security and/or pension sufficient? Rising costs of living: gas, health care, food, utilities, medications,

More information

ALL YOU NEED TO KNOW.

ALL YOU NEED TO KNOW. LIFETIME MORTGAGE LIFETIME MORTGAGES ALL YOU NEED TO KNOW 1 ALL YOU NEED TO KNOW. 2 LIFETIME MORTGAGES ALL YOU NEED TO KNOW CONTENTS 1. IntrODUCTION 2. AbOUT lifetime mortgages 3. FeaturES of our lifetime

More information

Section D. Reverse Mortgage Loan Features and Costs Overview

Section D. Reverse Mortgage Loan Features and Costs Overview Section D. Reverse Mortgage Loan Features and Costs Overview Contents This section contains the following topics: Topic See Page 1. Types of Reverse Mortgage Products 5-D-2 2. Reverse Mortgage Loan Limits

More information

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 CONTENTS What is equity release?... 3 How much money could I raise through an equity release?... 4 What

More information

Loan for property (Courtesy: Economic Times, apnaloan & apnapaisa, Accommodation times, i-save & others)

Loan for property (Courtesy: Economic Times, apnaloan & apnapaisa, Accommodation times, i-save & others) Loan for property (Courtesy: Economic Times, apnaloan & apnapaisa, Accommodation times, i-save & others) Frequently Asked Questions: Q. What are the steps involve in the process of loan & what fees it

More information

For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:-

For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:- 1. Executive Summary For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:- Ø A place to live, with security of tenure.

More information

HOUSE BILL 2242 AN ACT AMENDING TITLE 6, ARIZONA REVISED STATUTES, BY ADDING CHAPTER 16; RELATING TO REVERSE MORTGAGES.

HOUSE BILL 2242 AN ACT AMENDING TITLE 6, ARIZONA REVISED STATUTES, BY ADDING CHAPTER 16; RELATING TO REVERSE MORTGAGES. Senate Engrossed House Bill State of Arizona House of Representatives Forty-ninth Legislature Second Regular Session HOUSE BILL AN ACT AMENDING TITLE, ARIZONA REVISED STATUTES, BY ADDING CHAPTER ; RELATING

More information

Contributing the Family Home to Super

Contributing the Family Home to Super Contributing the Family Home to Super An innovative proposal designed to assist with the accommodation and income needs of older Australians wishing to remain in their own homes. Abstract There has been

More information

ON :- increased treatment. senior citizen. most of. liquidity for. Page 60

ON :- increased treatment. senior citizen. most of. liquidity for. Page 60 ISSN No. 0974-035X An Indexed Refereed Journal of Higher Education Towards Excellence UGC-ACADEMIC STAFFF COLLEGE, GUJARAT UNIVERSITY, AHMEDABAD, INDIA REVERSEE MORTGAGE Mrs Charmy Lad I NTRODUCTIO ON

More information

Chadwick s. Equity Release

Chadwick s. Equity Release c Independent Chadwick s Financial Advisers Equity Release Contents Chadwick s IFA Page 4 Equity Release Page 5 Lifetime Mortgages Page 6 Home Reversion Schemes Page 7 Considerations Pages 8&9 Safe Guards

More information

Housing Finance being one of the safest lending avenues has. also contributed to the emergence of new players in the market.not

Housing Finance being one of the safest lending avenues has. also contributed to the emergence of new players in the market.not Introduction: Housing Finance being one of the safest lending avenues has also contributed to the emergence of new players in the market.not only home loans easily available, with intense competition in

More information

International Journal of Commerce and Business Management. A study on reverse mortgage of SBI in Madhya Pradesh and Chattisgarh

International Journal of Commerce and Business Management. A study on reverse mortgage of SBI in Madhya Pradesh and Chattisgarh IJCBM Volume 5 Issue 1 April, 2012 92-97 International Journal of Commerce and Business Management A CAS E S T U D Y A study on reverse mortgage of SBI in Madhya Pradesh and Chattisgarh S.K. KHATIK AND

More information

Briefing Paper on Equity Release

Briefing Paper on Equity Release COUNCIL of MORTGAGE LENDERS Briefing Paper on Equity Release What is equity release? 1. Equity is the difference between any mortgage you may have and the value of your home. Equity release is a way of

More information

Residential mortgages general information

Residential mortgages general information Residential mortgages general information Residential mortgages general information 2 Contents Who we are and what we do 2 Forms of security 2 Representative Example 2 Indication of possible further costs

More information

BEFORE DRAWDOWN OF REVERSE MORTGAGE LOAN

BEFORE DRAWDOWN OF REVERSE MORTGAGE LOAN IMPORTANT NOTICE Please read this notice carefully before you proceed with your application for a reverse mortgage loan. This notice only provides additional information about a reverse mortgage loan,

More information

Certificate in Regulated Equity Release

Certificate in Regulated Equity Release Unit 1: Fundamentals of Equity Release Certificate in Regulated Equity Release Attainment Level knowledge of: K1 Definition of a Home Reversion (HR) plan & alternative methods of equity release/capital

More information

International Bond Key features

International Bond Key features International Bond Key features This is an important document. Please read it and keep for future reference. Helping you decide This key features document contains important information about the main

More information

Reverse Mortgage Education

Reverse Mortgage Education Reverse Mortgage Education Preface As people are continually living longer, they must plan financially to make sure their money outlives them, instead of outliving their money. As pension plans get cut

More information

Enhance Your Financial Security. With a Home Equity Conversion Mortgage

Enhance Your Financial Security. With a Home Equity Conversion Mortgage Enhance Your Financial Security With a Home Equity Conversion Mortgage 1 Call for Additional Information 925-258-0386 1 Unlock Your Home s Equity We understand that you want to transition easily into the

More information

CAVENDISH EQUITY RELEASE. The Essential Guide. Equity Release TRUSTED & IMPARTIAL ADVICE SINCE 1985

CAVENDISH EQUITY RELEASE. The Essential Guide. Equity Release TRUSTED & IMPARTIAL ADVICE SINCE 1985 CAVENDISH Equity Release TRUSTED & IMPARTIAL ADVICE SINCE 1985 EQUITY RELEASE The Essential Guide INDEX Welcome to Cavendish Equity Release 3 How can Equity Release be used? 4 Why is specialist advice

More information

READING 14: LIFETIME FINANCIAL ADVICE: HUMAN CAPITAL, ASSET ALLOCATION, AND INSURANCE

READING 14: LIFETIME FINANCIAL ADVICE: HUMAN CAPITAL, ASSET ALLOCATION, AND INSURANCE READING 14: LIFETIME FINANCIAL ADVICE: HUMAN CAPITAL, ASSET ALLOCATION, AND INSURANCE Introduction (optional) The education and skills that we build over this first stage of our lives not only determine

More information

Complete Guide to Reverse Mortgages

Complete Guide to Reverse Mortgages Complete Guide to Reverse Mortgages Contents I. What Is a Reverse Mortgage? 2 Reasons for taking out a reverse mortgage 2 Differences between reverse and traditional mortgages 2 II. Where to Get Reverse

More information

The Deferred Payments Scheme. An information leaflet for home owners, paying for residential or nursing home care

The Deferred Payments Scheme. An information leaflet for home owners, paying for residential or nursing home care The Deferred Payments Scheme An information leaflet for home owners, paying for residential or nursing home care What is the Deferred Payment Scheme? The deferred payment scheme is designed to help if

More information

Investing in unlisted property schemes?

Investing in unlisted property schemes? Investing in unlisted property schemes? Independent guide for investors about unlisted property schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from

More information

Challenger Guaranteed Annuity (Liquid Lifetime)

Challenger Guaranteed Annuity (Liquid Lifetime) Challenger Guaranteed Annuity (Liquid Lifetime) Product Disclosure Statement (PDS) Dated 27 October 2014 Challenger Guaranteed Annuity (SPIN CHG0005AU) Issuer Challenger Life Company Limited (ABN 44 072

More information

Mortgage Conditions and Explanations

Mortgage Conditions and Explanations Mortgage Conditions and Explanations 1 Mortgage Conditions and Explanations Bath Building Society ( the Society ) The paragraphs headed Introduction and Membership Rights below are included purely for

More information

Deferred Payment Scheme Information Leaflet

Deferred Payment Scheme Information Leaflet Deferred Payment Scheme Information Leaflet What is the Deferred Payments Scheme? The Deferred Payments Scheme is designed to help you if you have been assessed as having to pay the full cost of your residential

More information

PERCEPTION OF SENIOR CITIZEN RESPONDENTS AS TO REVERSE MORTGAGE SCHEME

PERCEPTION OF SENIOR CITIZEN RESPONDENTS AS TO REVERSE MORTGAGE SCHEME CHAPTER- V PERCEPTION OF SENIOR CITIZEN RESPONDENTS AS TO REVERSE MORTGAGE SCHEME 5.1 Introduction The present study intended to investigate the senior citizen s retirement planning and their perception

More information

The Effective Use of Reverse Mortgages in Retirement

The Effective Use of Reverse Mortgages in Retirement Page 1 of 8 Copyright 2009, Society of Financial Service Professionals All rights reserved. Journal of Financial Service Professionals July 2009 The Effective Use of Reverse Mortgages in Retirement by

More information

White Paper Estate Freeze Technique: Private Annuity

White Paper Estate Freeze Technique: Private Annuity White Paper Estate Freeze Technique: Private Annuity www.selectportfolio.com Toll Free 800.445.9822 Tel 949.975.7900 Fax 949.900.8181 Securities offered through Securities Equity Group Member FINRA, SIPC,

More information

An offer to extend Right to Buy discounts to housing association tenants

An offer to extend Right to Buy discounts to housing association tenants An offer to extend Right to Buy discounts to housing association tenants This document sets out the terms of an offer the National Housing Federation has made to the Government for a potential agreement

More information

Senior Concerns. Will you outlive your money?

Senior Concerns. Will you outlive your money? NMLS #64997 Senior Concerns Is your mortgage paid off? Is your Social Security and/or pension sufficient? Rising costs of living: gas, health care, food, utilities, medications, etc. Fixed income with

More information

FINANCIAL SERVICES BOARD COLLECTIVE INVESTMENT SCHEMES

FINANCIAL SERVICES BOARD COLLECTIVE INVESTMENT SCHEMES FINANCIAL SERVICES BOARD COLLECTIVE INVESTMENT SCHEMES INTRODUCTION This booklet will provide you with information on the importance of understanding ways in which Collective Investment Schemes ( CIS )

More information

Submission to the Financial System Inquiry. August 2014. Homesafe Solutions Pty Ltd

Submission to the Financial System Inquiry. August 2014. Homesafe Solutions Pty Ltd Submission to the Financial System Inquiry August 2014 Homesafe Solutions Pty Ltd Executive Summary Homesafe Solutions Pty Ltd welcomes the inclusion of access to equity in the home in the Interim Report

More information

IT S MORTGAGE REVERSE A SIGN OF THE TIMES

IT S MORTGAGE REVERSE A SIGN OF THE TIMES IT S A SIGN OF THE TIMES REVERSE MORTGAGE UNLOCK THE EQUITY IN YOUR HOME If you want the financial freedom to spend your retirement how you choose, with independence and dignity, you should talk to us.

More information

Reverse Mortgage Facilities in India For Cash Poor Home Rich Senior Citizens

Reverse Mortgage Facilities in India For Cash Poor Home Rich Senior Citizens BANKING AND FINANCE 468 Reverse Mortgage Facilities in India For Cash Poor Home Rich Senior Citizens There has been a limited academic debate on the prospects and problems attributable to reverse mortgage

More information

Reverse Mortgage. That s what we re here for. Financial freedom to do the things you ve always wanted. Here for good.

Reverse Mortgage. That s what we re here for. Financial freedom to do the things you ve always wanted. Here for good. Reverse Mortgage Financial freedom to do the things you ve always wanted That s what we re here for. Here for good. Contents 2 The freedom of a Reverse Mortgage 3 Product overview 4 About Reverse Mortgages

More information

Deferred Payment Scheme. This leaflet gives a guide to Derbyshire County Council s Deferred Payment Scheme

Deferred Payment Scheme. This leaflet gives a guide to Derbyshire County Council s Deferred Payment Scheme Deferred Payment Scheme This leaflet gives a guide to Derbyshire County Council s Deferred Payment Scheme Contents What is the Deferred Payment Scheme? Page 3 To apply for a Deferred Payment you must...

More information

Credit Guarantee Fund Trust for Micro and Small Entreprises (CGTMSE) Presentation on Credit Guarantee Scheme

Credit Guarantee Fund Trust for Micro and Small Entreprises (CGTMSE) Presentation on Credit Guarantee Scheme Credit Guarantee Fund Trust for Micro and Small Entreprises (CGTMSE) Presentation on Credit Guarantee Scheme MSE as defined in MSMED Act 2006 Micro and Small Enterprises (MSE) in India MSE is governed

More information

Help to Buy Buyers Guide

Help to Buy Buyers Guide Help to Buy Buyers Guide Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy Page 1 of 27 Key information Buyers using this scheme must provide security in the form of a second

More information

MassMutual Whole Life Insurance

MassMutual Whole Life Insurance A Technical Overview for Clients and their Advisors MassMutual Whole Life Insurance The product design and pricing process Contents 1 Foreword 2 A Brief History of Whole Life Insurance 3 Whole Life Basics

More information

onsum r s ui to v rs ort s

onsum r s ui to v rs ort s onsum r s ui to v rs ort s Access Cash for Living Expenses r s o l ik om Home Mortgage Bank Prince s Court, Ground Floor Corner Keate & Pembroke Streets Port of Spain,Trinidad,W.I. Tel.(868)625-4972,627-4695

More information

THE FHA REVERSE MORTGAGE PROGRAM:

THE FHA REVERSE MORTGAGE PROGRAM: THE FHA REVERSE MORTGAGE PROGRAM: HELPING TEXAS SENIORS FINANCE RETIREMENT WITH THEIR OWN RESOURCES By: W. Scott Norman NMLS #543236 Sente Reverse Mortgage 901 S. MoPac, Building 4, Suite 125 Austin, Texas

More information

January 28, 2015 Kauffman Conference Center

January 28, 2015 Kauffman Conference Center January 28, 2015 Kauffman Conference Center Changing Housing Needs for Older Adults Reverse Mortgages: Opportunities and Challenges Pete Mendenhall, CRMP, CAPS North American Savings Bank Understanding

More information

Module 8: Reverse Mortgages and Other Private Financing Options for Long-Term Care. Posted 5/31/05

Module 8: Reverse Mortgages and Other Private Financing Options for Long-Term Care. Posted 5/31/05 Module 8: Reverse Mortgages and Other Private Financing Options for Long-Term Care Posted 5/31/05 Answers to Key Questions What LTC financing options are available other than insurance? What are the differences

More information

Information for people in residential care with property

Information for people in residential care with property Information for people in residential care with property If you are assessed as eligible for permanent residential care and you have a property and your other capital is valued at less than 23,250 the

More information

Equity Release Guide. www.seniorissues.co.uk

Equity Release Guide. www.seniorissues.co.uk Equity Release Guide www.seniorissues.co.uk For more information or to speak to one of our trained advisers please telephone our Senior Issues Team on 0845 855 4411 The Caesar & Howie Group 7/3/2008 EQUITY

More information

The New Tool For Retirement Income Planning. Presented by: Becky Bell, Regional VP, Mortgage Banking

The New Tool For Retirement Income Planning. Presented by: Becky Bell, Regional VP, Mortgage Banking The New Tool For Retirement Income Planning Presented by: Becky Bell, Regional VP, Mortgage Banking Why Consider a Reverse Mortgage? Allows Clients to Take a Dormant Asset (Home Equity) and Put it to Work

More information

Reverse Mortgages - Features & Risks

Reverse Mortgages - Features & Risks Reverse Mortgages - Features & Risks By Kumar, Purnananda Mallela, Divakaruni,RajasekharKanagala, & Sri Venkata, Madhukar Executive Summary Elderly people all over the world share one common hardship insufficient

More information

All you need to know about the. Seniors Money Lifetime Loan. Information for you, your family and your advisers

All you need to know about the. Seniors Money Lifetime Loan. Information for you, your family and your advisers All you need to know about the Seniors Money Lifetime Loan Information for you, your family and your advisers 1 Contents This brochure from Ireland s only specialist Lifetime Mortgage provider highlights

More information

2005 National LTCi Producer Summit

2005 National LTCi Producer Summit 2005 National LTCi Producer Summit As Reverse Mortgage Popularity Soars, How Can You Tap the Growing Market? Adrian Prieto, Key Account Manager Financial Freedom Senior Funding Corp. Financial Freedom

More information

Summary What is a Reverse Equity Options Mortgage? Closing Costs Who would apply for this When is the mortgage paid type of loan? back?

Summary What is a Reverse Equity Options Mortgage? Closing Costs Who would apply for this When is the mortgage paid type of loan? back? Reverse Mortgage Credit Union Mortgage Association 9693-A Main Street Fairfax, VA 22031 Toll Free: (800) 231-8855 Ext. 128 Local: (703) 425-1204 Ext. 128 www.cumortgage.net Summary What is a Reverse Mortgage?

More information

Understanding Business Insurance

Understanding Business Insurance Version 4.0 Preparation Date: 2 November 2009 This document provides some additional information to help you understand the financial planning concepts discussed in the SOA in relation to business insurance.

More information

Equity Release. Standards for Appropriate Examinations. AES3/011206 Financial Services Skills Council 2006 1

Equity Release. Standards for Appropriate Examinations. AES3/011206 Financial Services Skills Council 2006 1 Equity Release Standards for Appropriate Examinations AES3/011206 Financial Services Skills Council 2006 1 The Standards The Standards contain the following information: 1. The learning outcomes that must

More information

Investing in mortgage schemes?

Investing in mortgage schemes? Investing in mortgage schemes? Independent guide for investors about unlisted mortgage schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from ASIC about

More information

House Rich and Cash Poor: Ways to Unlock Your Home s Value

House Rich and Cash Poor: Ways to Unlock Your Home s Value House Rich and Cash Poor: Ways to Unlock Your Home s Value Avenidas Housing Conference, March 10, 2012 Barbara Krimsky Binder, CFP, BKB Financial Advisors Does This Describe Your Situation? - You bought

More information

Planning for Care Costs. The Options in Scotland

Planning for Care Costs. The Options in Scotland Planning for Care Costs The Options in Scotland For more information or to speak to one of our trained advisers please telephone our team on 0800 152 2037 Solicitors For Older People Scotland 1/7/2012

More information

Moss Adams Introduction to ESOPs

Moss Adams Introduction to ESOPs Moss Adams Introduction to ESOPs Looking for an exit strategy Have you considered an ESOP? Since 1984, we have performed over 2,000 Employee Stock Ownership Plan (ESOP) valuations for companies with as

More information

Converting Home Equity into Income: A Reverse Mortgage Review

Converting Home Equity into Income: A Reverse Mortgage Review Converting Home Equity into Income: A Reverse Mortgage Review Are you interested in the possibility of converting equity in your home into cash without having to move or assume debt that has to be currently

More information

Guide to Reverse Mortgages

Guide to Reverse Mortgages Guide to Reverse Mortgages Prepared by Steve Juetten, CFP Juetten Personal Financial Planning, LLC. www.finpath.com 425-373-9393 Disclaimer: the information in this report was prepared from reliable sources;

More information

TRUSTEE TRANSFER PLAN Policy Document

TRUSTEE TRANSFER PLAN Policy Document TRUSTEE TRANSFER PLAN Policy Document [2] POLICY DOCUMENT TRUSTEE TRANSFER PLAN Contents 1. Introduction 4 2. Payments to us 6 3. Charges 7 4. Benefits payable under the Policy 8 5. Investments under the

More information

Reverse Mortgage Is it right for you?

Reverse Mortgage Is it right for you? Reverse Mortgage Is it right for you? Reverse Mortgages are being hyped as a tremendous tool for retirement income. This type of mortgage uses part of the equity in a home as collateral. A Reverse Mortgage,

More information

Is A Reverse Mortgage Right for You?

Is A Reverse Mortgage Right for You? Is A Reverse Mortgage Right for You? NewRetirement s Guide to Reverse Mortgages www.newretirement.com (877) 394-1305 Table of Contents What is a Reverse Mortgage? Are You Eligible For a Reverse Mortgage?

More information

A Guide to Reverse Mortgages

A Guide to Reverse Mortgages A Guide to Reverse Mortgages You may have heard about reverse mortgages on television or from a friend and are not quite sure what they are, or you may already know what a reverse mortgage is and are not

More information

WARWICK BUTCHART ASSOCIATES Independent Financial Advisers FINANCIAL PLANNING QUESTIONNAIRE

WARWICK BUTCHART ASSOCIATES Independent Financial Advisers FINANCIAL PLANNING QUESTIONNAIRE WARWICK BUTCHART ASSOCIATES Independent Financial Advisers FINANCIAL PLANNING QUESTIONNAIRE Our role as Independent Financial Advisers can best be described as: To establish To explore To agree To report

More information

Basic Guide to Retirement Income Options

Basic Guide to Retirement Income Options Basic Guide to Retirement Income Options Can I afford to retire? Which retirement income solution is best for me? Should I take all my tax-free cash entitlement? Will my family benefit from my pension

More information

WHAT IS EQUITY RELEASE? WHY CONSIDER EQUITY RELEASE?

WHAT IS EQUITY RELEASE? WHY CONSIDER EQUITY RELEASE? WHAT IS EQUITY RELEASE? Equity Release can free some of the capital tied up in your home, while you continue to live there. This money can be in the form of a tax-free lump sum, a regular income or a combination

More information

Deferred payment agreements April 2015

Deferred payment agreements April 2015 Deferred payment agreements April 2015 This leaflet explains how a deferred payment agreement may help you when you move to a care home What is a deferred payment? A deferred payment is when the council

More information

Equity Release Guide. Helping you make the right decision. nationwide service all lenders available personal visits. www.therightequityrelease.co.

Equity Release Guide. Helping you make the right decision. nationwide service all lenders available personal visits. www.therightequityrelease.co. Equity Release Guide 0800 612 5749 www.therightequityrelease.co.uk Helping you make the right decision nationwide service all lenders available personal visits 1 Welcome to The Right Equity Release Who

More information

Seniors Reverse Mortgage Fact File and Answers to Frequently Asked Questions

Seniors Reverse Mortgage Fact File and Answers to Frequently Asked Questions Seniors Reverse Mortgage Fact File and Answers to Frequently Asked Questions A public information service from Access Reverse Mortgage 1-888-340-0305 2014 Access Reverse Mortgage Corp.. All rights reserved.

More information

Retirement Mortgage Product summary

Retirement Mortgage Product summary Retirement Mortgage Product summary The Retirement Mortgage from Hodge Lifetime provides you with a flexible way to borrow money in retirement. A legal charge is secured on your home. AIMS The Retirement

More information

The following information is provided to you by U.S. Department of Housing and Urban Development.

The following information is provided to you by U.S. Department of Housing and Urban Development. The following information is provided to you by U.S. Department of Housing and Urban Development. Attachment C: Resources for Clients C.1 Important Information about Reverse Mortgage Counselors C.2 Reverse

More information

Unlocking the value of whole life

Unlocking the value of whole life An Educational Guide for Individuals Unlocking the value of whole life Whole life insurance as a financial asset Insurance Strategies Contents 3 Whole life insurance: A versatile financial asset 4 Providing

More information

L.K. Benson & Company Lyle Benson, CPA/PFS, CFP 1107 Kenilworth Dr, Suite 302 Baltimore, MD 21204 410-494-6680 lyle@lkbenson.com www.lkbenson.

L.K. Benson & Company Lyle Benson, CPA/PFS, CFP 1107 Kenilworth Dr, Suite 302 Baltimore, MD 21204 410-494-6680 lyle@lkbenson.com www.lkbenson. L.K. Benson & Company Lyle Benson, CPA/PFS, CFP 1107 Kenilworth Dr, Suite 302 Baltimore, MD 21204 410-494-6680 lyle@lkbenson.com www.lkbenson.com Reverse Mortgages Page 1 of 6, see disclaimer on final

More information

Is equity release the right choice for you? Protecting yourself If it isn t right for you, what are the alternatives?

Is equity release the right choice for you? Protecting yourself If it isn t right for you, what are the alternatives? Buyer s Guide : Content Page 1: What is equity release? Page 2: Is equity release the right choice for you? Page 3: Protecting yourself If it isn t right for you, what are the alternatives? Page 4: Lifetime

More information

RELEASING CASH FROM YOUR HOME

RELEASING CASH FROM YOUR HOME RELEASING CASH FROM YOUR HOME As a recommended adviser for the Society of Later Life Advisers (SOLLA) we are frequently asked to advise on home income/equity release plans. These notes are designed to

More information

MORTGAGE DICTIONARY. Amortization - Amortization is a decrease in the value of assets with time, which is normally the useful life of tangible assets.

MORTGAGE DICTIONARY. Amortization - Amortization is a decrease in the value of assets with time, which is normally the useful life of tangible assets. MORTGAGE DICTIONARY Adjustable-Rate Mortgage An adjustable-rate mortgage (ARM) is a product with a floating or variable rate that adjusts based on some index. Amortization - Amortization is a decrease

More information

A Financial Planning Technical Guide

A Financial Planning Technical Guide Insurance and Estate Planning A Financial Planning Technical Guide Securitor Financial Group Limited ABN 48 009 189 495 AFSL 240687 Contents Introduction 1 General insurance 1 Private health insurance

More information

Reverse Mortgage Information Guide

Reverse Mortgage Information Guide Reverse Mortgage Information Guide Table of Contents FHA Reverse Mortgages 3 Common Misconceptions about Reverse Mortgages 4 How the Program Works 4 Benefits of a HECM loan 4 HECM vs. Traditional Mortgage

More information

Section 1715z-20. Insurance of home equity conversion mortgages for elderly homeowners 1

Section 1715z-20. Insurance of home equity conversion mortgages for elderly homeowners 1 Section 1715z-20. Insurance of home equity conversion mortgages for elderly homeowners 1 (a) Purpose The purpose of this section is to authorize the Secretary to carry out a program of mortgage insurance

More information

About Mortgage Market Corp

About Mortgage Market Corp About Mortgage Market Corp Mortgage Market Corp. works with a variety of lenders and with this being one of the largest financial decision s that you will make, selecting the right mortgage program to

More information