Demographic trends that indicate the trend of population aging, together with the simultaneous increase of public expenditure for pensions, health and social care, have become not just an increasing burden, but also a challenge for Croatia and many other countries around the world. This imposes the need to find additional sources of financing for the elderly population and also the possible participation of private money capital in its financing. The technique of reverse mortgage financing was designed and presented as an effective solution for this problem and an acceptable way of financing elderly people who do not have a sufficient amount of current income, but are at the same time personal owners of valuable real properties. This technique allows the elderly to access capital „trapped“ in the value of their residential real estate. What is unique about a reverse mortgage is that it is a lifelong mortgage and not due for repayment during the life of the debtor. As an original American technique of financing elderly population, in the last ten years it has started to be applied and spread to the rest of the world, including some more developed European Union countries, while on the other markets, such as in Croatia, the introduction of it is still pending, because of its great development potential. The aim of this thesis is to get to the core of an innovative form of mortgage lending for the elderly population using the reverse mortgage technique and to show its application around the world. The highlight is on the prospects for the introduction of the reverse mortgage model, given the current topic of the recent earthquakes in Croatia.