Reverse Mortgage - Loans

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Reverse Mortgage

A Reverse Mortgage is a unique financial scheme specially designed for senior citizens to unlock the value of their property into cash flows. It allows you, the property owner, to receive a sum of monthly payout by mortgaging your paid-up property to the Bank without having to move out or sell the property.

Reverse Mortgage is currently available for private properties only.

Eligibility

To be eligible, you should meet the following criteria:

Age of at least 65 years old;

Singapore Citizen or Permanent Resident;

Owner of the private property, with remaining lease of 45 years at end of loan tenor. All owners of the property must be borrowers of the loan;

Property is preferably fully paid up, without any outstanding mortgage.

Interest Rate

The interest rate charged is currently at 5% p.a. on a floating basis. The rate may be reviewed from time to time.

Loan Tenor

The loan period is determined by the age of the borrowers, subject to the youngest borrower reaching the age of 90 years old at the end of the loan tenor.

Monthly Payout

The monthly payout depends on several factors including your property value, loan tenor and whether you have pledged your property under the CPF Minimum Sum Scheme.

The maximum quantum is 70% of the market valuation including the interest to be paid at the end of the loan tenor.

Assuming a property value of $500,000 and 20-year loan at an interest rate of 5.00% p.a., the estimated monthly payout is $823.00.

Before taking up a Reverse Mortgage, you should also be aware of other options available to you.

For example, you could sell your existing property and move in to a smaller place. You could also choose to rent a place instead after selling your property. The excess funds can be used to buy Annuity products to boost your cashflow in your golden years. If you have spare CPF savings, you could also use them to buy Annuity products that provide you a regular monthly payout for a fixed period or for the rest of your life.

You can also sublet part of your property for income.

For further clarifications or enquiries, please contact our Customer Service Officers at 1800-438 3333.