Every form of business carries a certain risk. Accordingly, banking is no exception. The banking system is influenced by constant changes, which requires the development of new models and business forms that are being customed to current needs. The purpose of this paper is to get acquainted with the reverse mortgage model as a financial product that enables the older population an additional source of funding. Third age population faces the problem of current income lack in order to meet basic livelihood needs. Because of low pensions and old age they are unable to fullfill the strict credit standards of financial institutions, which consequentially leads to the problem of financial exclusion. Among other things, there is a trend of rapid growth of the older population, which generates expenditures on state budgets in terms of increased allocations for health and social care and pensions. This paper analyzes the basic idea of a reverse mortgage model, its beginnings and the difference between the reverse mortgage and the traditional form of mortgage lending. Also, this paper explores in detail the reverse mortgage model on the US mortgage market and where it is most developed. In the extension to the US mortgage market topic, it describes the UK and French mortgage markets, as well as the presence of a reverse mortgage model in the aforementioned countries. In addition, it gives an overview of the possibility of introducing a reverse mortgage model in the Republic of Croatia.