The monthly payments are based on the estimated value of the house (considering the age, locality etc. of the house) and the expected age of death of the person. For old people who own a house and don’t have anyone to take care of them or don’t have sufficient income of their own for their living, this is indeed a boon.
On the other side, banks will get to sell the house after the person’s death by which they will get their money back. Thus it’s a very good opportunity for them too. And we can already see banks running for the pie.
Few days back, I saw a cartoon in Mathrubhumi, the Malayalam daily, on which the daughter-in-law and grandchildren of an old couple is taking good care of them for fear that the old couple might reverse mortgage their house and hence there is a chance that the daughter-in-law would lose the house! Guess this would decrease the number of old-age homes in India. And the saas-bahu serials in TV channels would also come to an end soon.