“This year's JTYK subscription increases 62% from a year earlier”
- Date 2016-03-17
- Views 585
- Easier qualifications expected to increase future subscription -
□ Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) announced on March 17, 2016, that 1,508
homeowners have subscribed to its JooTaekYeonKeum* reverse mortgage program this January and February.
* JooTaekYeonKeum (JTYK) is a state-guaranteed reverse mortgage loan in which senior citizens 60 years of age
or older provide their owned home as collateral and receive living expenses for their post-retirement life in the
form of monthly pension benefits either for the rest of their life or for a certain period of time.
□ Interestingly, the last three years saw a steady increase in JTYK subscription, especially in the months of
January and February. The number of new JTYK subscribers stood at 598 in 2014, 931 in 2015, and 1,508 this
year, indicating a steady growth in JTYK subscription.
□ Compared to the same period (from early January to the end of February) from a year earlier, last year saw a
55.68% increase in subscription, and this year a 61.97% from last year. This increase in subscription boosts the amount of guarantees provided HF during the same time. By year, the amount of guarantees provided by HF stood at KRW 682.8 billion in 2014, KRW 1,132.5 billion in 2015, and 1,818.8 billion in 2016.
□ In the meantime, HF has recently eased one of the current eligibility requirements for JTYK subscription by allowing homeowners to take out a JTYK reverse mortgage loan when either of them or their spouse turn 60 or older. This change is expected to further increase future subscription.
□ An HF official said of the recent upward trend in JTYK subscription, "The recent increase in JTYK subscription is the result of more seniors turning to JTYK after the recommendation of their family during the New Year's
holiday and also of their change of mind regarding home inheritance. The change in the eligibility
requirement and the recent launch of the Three NaeJibYeonKeum Loans will help us provide more loans to
the public.”