We analyze Korean households’ demand for the reverse mortgage loans byusing the Surveys for Housing Finance and Bogeumjari(mortgage) Loanconducted nationally in 2010 and 2012 by Korean Housing FinanceCorporation. To allow for sufficient flexibility, we use the generalized orderedprobit model that assumes individual heterogeneity in cut-off values. We findthat the generalized ordered probit model fits the data better than standardordered probit model. We also find that the demand for the reverse mortgagegrew between 2000 and 2010 and that the demand increases as householdincome decreases, as the age of household head increases, and as the numberof children decreases.