View quick summary Reverse mortgage your home for next 15 years after retirement and get tax free monthly cash flow from banks/Housing Finance Companies to cover regular expenses. This is the opposite of taking a home loan at the time of purchase or construction of home. You can live in the house for life. You need not repay the loan amount. The legal heir may get the house back after paying the outstanding loan amount.
Reverse Mortgage: How to start
To start with reverse mortgage, buy home through home loan for 15/20 years during your service and start disciplined retirement planning. Start with a small house, say Rs 10 lakhs, instead of waiting. You can buy a bigger house after 5 years for self-use, in case the corpus needs to be increased and the standard of living is improved. There is no income tax liability as there are no rentals, in case of reverse mortgage. Rather, you save tax on interest paid amount. The capital gains on sale of house are not taxable if invested in another house purchase. Over time, real estate has given inflation adjusted returns. Hence, it makes sense to buy a house taking a loan instead of adding in fixed deposit for buying a house later.