JTYK Monthly Payments To Be Adjusted From March

- Lower monthly payments for those in their 60s and higher monthly payments for those in their 80s and 90s
- No changes in the amount for existing JTYK subscribers

The amount of monthly payments paid under the JooTaekYeonKeum (JTYK) reverse mortgage scheme will be adjusted for those who newly apply for the scheme from March 2, 2018, onwards.

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) announced on January 31, 2018, that it will adjust the amount of JTYK monthly payments for those who apply for JTYK subscription starting from March. Since the launch of the JTYK scheme in 2007, HF has annually readjusted key factors that determine its JTYK payments, such as the rate of increase in home prices and life expectancy, in order to set the appropriate amount of JTYK monthly payouts according to the relevant law. 

After the adjustments, this year's average amount of monthly payouts for JTYK subscribers in all age groups will be the same as that of last year. However, there will be changes in the amount by age group. On average, the adjustments will lower the amount of monthly JTYK payments ▲ by 1.1% for those in their 60s and ▲ by 0.0% for those in their 70s. At the same time, the adjustments will increase the amount of monthly JTYK payments ▲ by 1.1% for those in their 80s and ▲ by 0.1% for those in their 90s.

The decrease in monthly payments for JTYK subscribers in their 60s is the result of a larger gain in their life expectancy than that of those in their 80s and 90s according to the Life Table released by Statistics Korea at the end of last year. As life expectancy for JTYK subscribers increases, they receive JTYK monthly payment for a longer period of time, which means lower monthly payments.

The adjustments will apply to those who apply for JTYK subscription from March 2, 2018, onwards. The existing subscribers and new subscribers up until the end of February 2018 will receive the current level of monthly payments.

An HF official advised, "For those hesitant to subscribe to the JTYK program, it would be best to first check out how the monthly payment for their age group is going to be changed with the adjustments and then decide when to join the program.”