What is the difference between a Mortgage and a Reverse Mortgage? Difference between a mortgage and a reverse mortgage loan are as follows – A mortgage loan provides finances against the mortgage of an immovable asset. A reverse mortgage loan provides funds against a residential property’s equity build-up. The regular mortgage loan can be availed by mortgaging either a residential or a commercial property or machinery. But only a residential property, where the borrower resides, can be used for reverse mortgaging. Mortgage loans can be availed by all types of borrowers. Reverse mortgages are only meant for senior citizens. Mortgage loans are repayable over a decided tenor. But under reverse mortgages, no repayment is required until the demise of the borrower or nominee. Repayment liability under mortgage loans includes the principal plus interest. Under reverse mortgages, repayment liabilities can never exceed the reverse mortgaged property’s value