Home Pension Now Available to Owners of Homes with an Officially Appraised Value of KRW 900 million* or lower and Residential Studios 

                                                                <KRW 1.2 to 1.3 billion in market value>

- Product counseling and application available from Dec. 1

- Home Pension subscriptions surpassing 80,000 at the end of Nov. with the eldest subscriber aged 108 years 

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) stated on the 1st that the National Assembly passed the draft revision of the ‘Korea Housing Finance Corporation Act’ last November, allowing owners of homes with an officially appraised value of KRW 900 million or lower (equivalent to KRW 1.2 to 1.3 billion in market value) or residential studios to receive counseling on, and apply for, the Home Pension reverse mortgage program from December 1, 2020. 

   * Revision bill scheduled to go into effect from early December (Home Pension payment dates may vary depending on the bill’s promulgation date.)

HF CEO Lee Jung-Hwan said, “We offer pre-purchase counseling* to provide those in financial distress due to the prolonged COVID-19 pandemic faster access to our Home Pension program. This counseling helps process their Home Pension applications and payments as soon as the revision bill enters into force, ensuring that they can receive Home Pension payments at the earliest possible date.“ 

   * HF will undertake all underwriting procedures, including necessary document submissions and home ownership verification, from the date of pre-purchase counseling and process loan approval and issuance upon the implementation of the revision bill.

In addition, HF will introduce the two other revisions to the Act, ‘trust-type Home Pension schemes’ and ‘seizure prevention passbooks’, around June 2021.  

Home Pension, which was launched in 2007, saw its cumulative subscriptions surpass 80,000 as of the end of November. A closer look at these subscriptions shows that the average home is valued at KRW 303 million and that 80.3% of the homes are 85㎡ or smaller. In addition, the average monthly payout amount is KRW 1.026 million. Subscribers are aged 72.2 years on average. Among them, those in their 70s and 60s account for 47.5% and 34.1%, respectively.

Furthermore, 71 Home Pension subscribers* are aged 100 years or older. The eldest of them is a 108-year-old centenarian who joined the Home Pension program last year. This year, Home Pension will see another subscriber reach the age of 100 years. This senior centenarian joined the program as soon as the program was launched in 2007 and has remained in the reverse mortgage program for 13 years.

   * Subscribers or their spouses aged 100 years or over (36 subscribers and 35 spouses)

An HF official said, “Anyone interested in Home Pension counseling and subscription can get free consultation and subscription assistance if they contact their nearest HF branch office or our call center (1688-8114).”