A reverse mortgage uses a home as collateral and handles payments and repayment differently from a standard home loan. The Bank of Thailand previously set a framework for specialized financial institutions. Before applying, confirm which providers currently offer a product and check their eligibility requirements and terms.
Understand that it is a secured loan
Do not treat the money as a government pension. Check who owns the property, the borrower’s eligibility, whether the home must be debt-free, and the conditions under which the borrower and spouse may continue living there.
Ask for details before signing
Request sample documents explaining the interest rate and compounding method, valuation and registration costs, payment schedule, events that end the contract, property maintenance responsibilities, and the heirs’ options to repay or redeem the loan.
Compare alternatives
Compare the loan with selling the home, moving to a smaller property, renting out the home, or using savings. Calculate the net amount available and consider how each option affects everyone who lives there. Ask a lawyer and a qualified financial adviser to review the contract before using a home as collateral.
Official reference
Related guides
- Set a home-buying budget
- Estimate healthcare costs in retirement
- Organize family assets and responsibilities
The linked video discusses general financial preparation before retirement, not reverse mortgages. It is included as related material; the loan information above refers to the Bank of Thailand document.