The Reverse Mortgage is a home equity loan that allows homeowners to convert some of the equity of their homes into cash, whilst still retaining ownership. It allows you to use your property to receive supplementary income and meet living expenses.
The Reverse Mortgage requires the repayment of the loan after you have ceased occupation of the house. Upon sale of the property, migration or death of the homeowner, the full amount becomes due and payable. This is normally repaid from the sale of the property, or the beneficiaries of the property can repay the loan from their personal resources.
The amount due on the Reverse Mortgage would be the lower of the outstanding loan balance or the market value of the property. That is, should the amount owed be greater than the value of the property, the individual would never be liable for an amount that exceeds the value of the home.