New JTYK Users in February Triple the Number of Last Year’s Total

This year, the number of new JTYK (Jutaekyeongeum, government guaranteed reverse mortgage loan) users is growing dramatically.

Korea Housing Finance Corporation (CEO Joo-jae Lim) announced on March 4 that JTYK saw 63 new users and recorded KRW 68.5 billion in February of this year.

The average number of new users per day until February was 2.9 – more than last year’s annual average (2.8).

Although the winter is a slow season, the number is rising due to the change in attitude toward housing. As the economic recession deepens, more senior citizens seek to secure daily living expenses by taking advantage of the homes they own.

In March, KHFC raised the loan limit – which forms the basis for calculating the monthly payment of reverse mortgage – from KRW 300 million to 500 million. It expects that the enhanced policy such as lowering the minimum age (65 to 60) and increasing the percentage of amount free to be added or withdrawn (30% to 50%) will bring more new JTYK users in April.

JTYK enables the senior citizens to convert the home equity in multiple payments, as in a pension plan, by obtaining a mortgage loan from a financial institution. The seniors with a home but not enough income can enjoy the stability of their home and cash.

To use this product, the applicant can contact the customer service center of KHFC at 1688-8114 or branch offices for consulting and evaluation. Upon receiving the guarantee, he or she may visit 6 designated banks – KB, Shinhan, Hana, Woori, IBK, or Nonghyup – and sign the loan agreement.

There are 12 branch offices that provide consultation: the sales department at the head office, South Seoul, Busan-Ulsan, Daegu-Gyeongbuk, Incheon, Gwangju-Jeonnam, Daejeon-Chungnam, Gyeonggi, Jeonbuk, Chungbuk, Gangwon and Jeju. For more details on branch offices, please refer to KHFC website at www.khfc.co.kr.