JTYK subscription in March increased 23% from last year
- Date 2015-04-08
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JTYK subscription in March increased 23% from last year
- 1,495 new subscribers added in the 1st quarter, a 41.6% rise year on year-
Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) stated on the 8th that 564 homeowners have
subscribed to its JooTaekYeonKeum* (JTYK) reverse mortgage loan program this March, bringing the cumulative
number of JTYK subscriptions to 24,129 through the end of the March.
* JooTaekYeonKeum (JTYK) is a state-guaranteed reverse mortgage loan in which senior citizens 60 years of age
or above 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.
Compared to the same period in the previous year, this March saw a 23.1% increase in subscription (458 subscriptions
→ 564 subscriptions) and a 26.8% rise in the guaranteed amount (461.5 billion won → 585 billion won).
The month-on-month growth in subscription and the guaranteed amount provided by HF stands at 18.0%
(478 subscriptions → 564 subscriptions) and 0.6% (581.7 billion won → 585 billion won), respectively.
In addition, the total number of senior homeowners who have signed up for the JTYK program in the first quarter
of this year reached 1,495, a 41.6% increase from last year (1,056 subscriptions). With this upward trend in subscription,
the guaranteed amount under the program rose by 50.1% (1.1443 trillion won → 1.7174 trillion won) during
the same period.
An HF official said, "Lower interest rates drive up the actual value of monthly payments received under the JTYK program
and drive down the amount to be settled after the death of the borrower. For this reason, in a time of low interest rates,
the JTYK program is gaining much attention as a viable asset management option for many senior homeowners."