What A Reverse Mortgage Is (At A Glance)

A reverse mortgage lets retirees unlock part of their home equity while continuing to live in the property. You receive payouts (lump sum or income stream), and the loan is repaid when the property is eventually sold or from the estate.

Myth 1: “You’ll Lose Ownership Of Your Home”

Fact: You keep legal title and the right to occupy the property. The lender holds a claim up to the loan amount. If the sale value exceeds what is owed, the surplus goes to you or your heirs.

Myth 2: “The Debt Can Exceed The Value Of The Home”

Fact: Reverse mortgages here include a No Negative Equity guarantee: repayment will not exceed the net sale proceeds of the home. Neither you nor your heirs will owe more than the property’s value.

Myth 3: “They’re Only For People In Financial Trouble”

Fact: Many retirees use reverse mortgages as a planned strategy: to supplement CPF payouts, diversify cash flow, and remain in a familiar home. They can be part of a prudent retirement plan, not merely a last resort.

When It Can Make Sense (And When It May Not)

Good fit: You want to stay put, need additional income, and prefer not to sell or right-size immediately.

Think twice: You plan to move soon, have ample liquid assets, or can meet goals by downsizing with lower costs.

Bottom Line

Reverse mortgages are not about giving up your home; they are a structured way to access equity while maintaining occupancy and ownership. With clear safeguards and careful planning, they can support a steadier retirement income.