- KHFC announces a series of measures to improve JTYK withdrawal-on-demand service -

The Korea Housing Finance Corporation (KHFC, CEO Joo-jae Lim) is extending the flexibility of Jootaekyeongeum reverse mortgage withdrawal-on-demand, and offering a simplified application documents.

On March 8, 2010, KHFC announced a series of measures to drastically improve the JTYK withdrawal-on-demand service for the convenience of its customers. The measures include expanding the terms of eligibility, simplifying the terms and conditions of the application, and shortening the processing period.

Withdrawal-on-demand (permissible within 50% of the loan ceiling), a service designed to help borrowers repay senior loans connected to a mortgaged home, had been previously limited to obligations under the name of the borrower or his/her spouse. However, it will now apply to all obligations that use the borrower’s home as collateral, allowing him/her to use it even if the house is offered as collateral to a third person.

In addition, eligibility for withdrawal-on-demand to cover medical or educational costs (permissible within 30% of the loan ceiling) will also be extended to cover the borrower, spouse, parents, children and grandchildren, and brothers and sisters.

Previously, applicants were required to submit an application form along with receipts, tax invoices, and other documents as proof of expenditures. Now, they will simply fill out and submit an application form.

Previously, it took approximately two months for an applicant to receive a certificate of guarantee, but the processing period will now be reduced to less than a month. Through simplified procedures, an applicant may sign a guarantee agreement without submitting a certificate of his/her personal seal. By accepting the relevant terms and conditions at the time of agreement, an applicant may also extend the guarantee period or change the name of the borrower to his/her spouse without visiting.  

To apply for a JTYK reverse mortgage loan guarantee, customers can call KHFC’s Customer Center (1688-8114) or visit the nearest KHFC branch office. After being issued a certificate of guarantee, they can visit one of nine commercial banks (KB, IBK, Shinhan, Woori, Hana, Daegu, Gwangju, Busan, or Nonghyup) to apply for a JTYK loan.

KHFC offers consultation services on JTYK reverse mortgages at 14 offices nationwide: these are the headquarters, Seoul South, Seoul North, Busan Ulsan, Daegu Gyeongbuk, Incheon, Gwangju Jeonnam, Daejeon Chungnam, Gyeonggi, Gangwon, Chungbuk, Jeonbuk, Gyeongnam, and Jeju offices. For more information on these offices, please visit KHFC’s official site (www.hf.go.kr).