Four men wearing masks entered the property on the Boleran Road in Garvagh about 20:00 BST on Thursday.
Two of the men, armed with a screwdriver and poker, held the couple in the kitchen while the others ransacked the house.
The gang left a short time later but police said it was unclear at this stage if anything was taken.
The couple, a man in his 90s and a woman in her 70s, were not physically harmed during the incident, but were treated for shock.
Police have appealed for anyone who saw a white coloured pick-up type vehicle being driven on the Boleran Road or in the general Garvagh area on Thursday to contact them.
DUP MLA for East Londonderry, Adrian McQuillan, said: "I totally condemn those responsible for this barbaric act of burglary and appeal to anyone with information to bring it forward to the PSNI."

The Birmingham-born musician will host Jazz Now alongside singer Emma Smith and Irish trumpeter Al Ryan every Monday night from 4 April.
It replaces Jazz On 3, which has been running for 18 years. That show's host, Jez Nelson, will move to Jazz FM.
Kinch said he wanted the new show to "shake up our jazz world with a bit of controversy".
Its remit is to explore the "vibrant new and underground jazz scene" - broadcasting from car parks and dance music clubs as well as established jazz venues.
Kinch's appointment is significant because he bridges the divide between the often closeted world of jazz and contemporary mainstream music.
A double MOBO-award winner and Mercury Prize-nominee, he has been described as one of British music's "freshest and most exciting prospects".
"Mr Kinch demonstrates what England has to teach [the USA] about narrative Hip-Hop," wrote The New York Times, reviewing his first US show  in 2004.
The first edition of Jazz Now will feature a concert by the British trio Malija; an interview with Mobo-winners Binker and Moses, and newly discovered recordings of organ legend Larry Young.
The following week will see the launch of a regular series of masterclasses by influential musicians, the first of which features saxophonist and composer Patrick Cornelius.
Future episodes will include the world premiere of Hans Koller's new composition, Twelve Re-Inventions for George Russell; up-and-coming trumpeter Ralph Alessi; and coverage of the BBC Young Musician 2016 Jazz Award.
"The underground and emerging jazz and wider contemporary music scene is really exciting right now," said Alan Davey, Controller of BBC Radio 3.
"We wanted to bring that scene to our audiences and through enlisting expert performers such as Soweto, Emma and Al, I am confident Jazz Now will do just that."
An elderly couple have been held by a gang armed with a poker at their home in County Londonderry.
[NEXT_CONCEPT]
Renowned saxophonist and rapper Soweto Kinch is to front a new-look jazz show on BBC Radio 3.