Minister of Social Rehabilitation Dale Butler has thrown his weight behind a loan product called reversible mortgage.

The target audience is older Bermudians who own their own property outright, but may be struggling to make ends meet ? a predicament referred to as house-rich but cash-poor.

Mr. Butler believes seniors who are also homeowners could benefit significantly if reversible mortgages were introduced.

"Why not take some money out of the equity of their home while they're alive and use that to benefit their life or other people's lives."

In a reversible mortgage, the bank appraises the property and offers a percentage of that value as cash.

The lender doesn't get paid back until the homeowner moves, sells, refinances or dies.

And upon death, the loan note is based to whomever inherits the home.

Mr. Butler said: "When their child inherits the home, he gets the home, not free, but with that debt. If the parent took out $100,000, the child gets the home willed to him at $100,000.

"He could complain, but where are you going to find a house for $100,000?"

Meanwhile, in the years before their deaths, the parents are no longer house-rich and cash-poor. They can use the $100,000 for prescription drugs, travel or whatever they want.

"It will improve their quality of life overall, rather than sitting there holding onto these deeds," Mr. Butler explained.

The Minster has partnered with entrepreneur Rodney Smith ? taking the message to the media and to town hall meetings.

Mr. Smith has indicated the reversible mortgage can be quite lucrative for seniors.

"People can now tap into the equity in their house and take it out, quite possibly up to 50 percent," he said.

So in a fairly common $1m Bermudian home, a lender could offer up to $500,000.

The problem with this idea is that no bank on the Island currently offers a reversible mortgage.

But the Minister wasn't deterred because he said Mr. Smith was touting 100 percent mortgages long ago and both major banks have since announced they will offer them.

The two men are now meeting with banks to tout reversible mortgages.

Mr Smith said: "One bank was so enthused they began work on it immediately and dedicated one of their employees to this specifically."

Because so many seniors could potentially benefit, there's a risk of a lot of cash being flooded into the local economy all at once.

But Mr. Smith believes the diversified options for payment should eliminate too much money hitting the streets too quickly.

He said: "A person can take monthly payments, lines of credit, lump sums, or a combination of all three."

He also mentioned banks would provide comprehensive education programs to make sure seniors are making the best choices.

Mr. Smith insisted neither man benefits financially for promoting reversible mortgages which are already available in other countries.

He said: "We do it for the personal satisfaction and to improve the lives of our seniors. What could be better than that?"