Limits on JTYK lump sum withdrawals increased

- The maximum JTYK lump sum withdrawal for general purposes expanded to 50% of estimated home value-

Beginning July 2, the limit of JTYK (reverse mortgage loan) lump sum withdrawals that borrowers could make for general purposes such as covering medical or educational expenses expanded from 30 percent (maximum 150 million won) to 50 percent (maximum 250 million won) of estimated home value. Prior to this decision, borrowers could withdraw up to 50% of their estimated home value only for repaying their reverse mortgage loan or returning security deposits.

“The higher limit applies to new JTYK borrowers as well as existing borrowers,” said a KHFC official. “But caution is needed when deciding whether to take a higher limit. You may set a limit on the lump sum withdrawal and not use it, or use it and then return it, but the amount of your JTYK monthly payments will not go up.”