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HF KOREA HOUSING FINANCE CORPORATION

Home Pension (Reverse Mortgage)

Home > Home Pension (Reverse Mortgage) > Public Announcement > Announcement 1

Public Announcement

1 Meaning of Lump-Sum Withdrawals Open
  • A lump-sum withdrawal refers to the amount that a Home Pension user sets in advance within a certain scope of the loan limit to withdraw in case the user needs large amount of money.
  • The withdrawal must be used for purposes that are publicly announced on the KHFC webpage as below.
2 Purposes of Lump-Sum Withdrawals Open
Purposes of Lump-Sum Withdrawals
Category ① General purposes ② Loan repayment
Details of use General expenses for elderly lifetime spending such as medical and educational expenses, home maintenance and repair costs, expenses for the four ceremonial occasions of coming of age, wedding, funeral, and ancestral rites
※Prohibited purposes
- Home purchasing and rental
- Speculative acts including gambling and
speculation, spending on extravagances and entertainment, etc. 
Repayment of existing,
- Mortgage loans, other loans, etc.
- Jeonse (returnable lump-sum rental deposit) on which the right of jeonse remains established
- Rental deposit paid under a lease agreement
Limit Up to 50% of the loan limit
(maximum KRW250 million) 
Eligibility Owner, his/her spouse, lineal family members and siblings of the owner
or his/her spouse
Credit secured
by the house concerned 
Application
period
One year before and after the actual
payment date
When applying for Home Pension
3 Rationale for Restrictions on Purposes of Lump-Sum Withdrawals Open

Article 3-2 PAYMENT MEANS OF ANNUITIES, ETC. A specific amount of money shall be paid to the homeowner as needed within 50% of the loan limit, pursuant to Article 9, Subparagraph (4)-2 of the Korea Housing Finance Corporation Act, for any of the following purposes:

  • To pay off the remainder of a mortgage held on a house
  • To return a deposit to the lessee of a house under a lease contract thereon pursuant to Article 3, Subparagraph 3 here of or To serve other purposes such as medical expenses, educational expenses and home repair/maintenance expenses as prescribed by the President of the Corporation and published on the official website there of.