Homeowners will be allowed to keep their JTYK subscription through the reconstruction of their collateralized homes
- Date 2015-08-04
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“Homeowners will be allowed to keep their JTYK subscription through the reconstruction of their collateralized homes”
- The change is expected to help increase the subscription of seniors with older homes that might undergo redevelopment or reconstruction -
Subscribers of the JooTaekYeonKeum (JTYK) reverse mortgage loan will be able to keep their subscription
and receive pension benefits even if their collateralized homes undergo redevelopment or reconstruction.
This will ease the mind of homeowners who have been cautious about joining the program out of concerns
over a possible redevelopment or reconstruction of their properties.
The Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) announced on the 4th that JTYK subscribers
are now able to keep their subscription even if their collateralized homes undergo redevelopment or reconstruction,
after the State Council passed an amendment to the Enforcement Decree of the Korea Housing Finance Corporation
Law. Prior to the amendment, the termination of JTYK subscription upon the redevelopment, reconstruction,
or remodeling of a collateralized property was pointed out as one of the main reasons that prevented owners of
older homes from joining the program.
An HF official said, “JTYK subscribers who own older homes can now receive pension benefits without interruptions
even if their properties undergo reconstruction.” He also added, “We expect this change to help increase the number of
subscribers for JTYK.”