One way to help owners of private housing monetise their property for retirement is to relaunch the reverse mortgage scheme, which was first introduced eight years ago. Although it did not meet with much success at the time, property analysts say more elderly home owners could be attracted to the scheme if it ensures good payouts. Under a reverse mortgage, the owner retains the full lease of the...
Reverse Mortgage
The National Development Ministry (MND) will study whether reverse mortgages should be provided by the private market or by the government in future. A reverse mortgage is a loan taken up by the owner using his property as collateral. This loan is then repaid with interest upon termination of the loan, or death, typically from the sales proceeds of the property. In Parliament on Monday, the...
The government is seriously studying the reverse mortgage scheme as an additional option to help the elderly in Singapore monetise their flat. Under a reverse mortgage, the owner retains the full lease of his flat but takes a loan against it as collateral. The owner then repays the loan with accumulated interest upon termination, or death, usually with sales proceeds from the flat. The idea of a...
Landmark lawsuit over reverse mortgage dispute will set legal precedent here IN A case that has been touted as the first of its kind in Singapore, a couple have sued NTUC Income for a reverse mortgage deal that turned sour, claiming that the insurer had wrongfully seized their home in 2006. On Friday, NTUC Income filed its defence, setting the stage for a possible court showdown while maintaining that it...
THE Housing and Development Board's (HDB) lease buyback scheme appears to be the best option for the elderly who wish to "unlock" the value of their homes. The lease buyback scheme, which the HDB will implement next year, provides the highest monthly payouts compared with other plans that enable the elderly to monetise their flats for retirement income. Under the lease buyback model, HDB will buy back...