This January sees 453 new JTYK subscriptions, a 67% increase from last January
- Date 2015-02-16
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This January sees 453 new JTYK subscriptions, a 67% increase from last January
- The average age of subscribers at 72 years old, the average property value at 278 million won, and the average monthly disbursement at 980,000 won
- A rise in the proportion of new subscribers with property worth 600 million won or less or those with property 85㎡ or smaller
□ In January 2015, 453 senior homeowners newly subscribed to JTYK, bringing the total number of subscribers to 23,087.
Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) announced on the 16th that 453 homeowners
have subscribed to its JooTaekYeonKeum (JTYK) reverse mortgage loan this January, a 67.1% rise from last January
(271 homeowners). Since the launch of the JTYK program in July 2007 through the end of this January, the total
number of JTYK subscribers has reached 23,087.
HF has identified its continued efforts to improve the JTYK program, such as expanding eligibility to a broader
group of homeowners since the launch of JTYK, as the main factor that has driven new subscription growth among
senior homeowners.
* 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.
□ The average age of subscribers at 72 years old, the average property value at 278 million won, and the average
monthly disbursement at 980,000 won
It has been found that since the launch of the JTYK program through 2014, the average age of JTYK subscribers
is 72 years old, while the average property value stands at 278 million won. In addition, the average amount
of monthly disbursement is 980,000 won. Of the collateralized mortgages, 94.4% are homes worth 600 million won
or less. Of all the collateralized properties, 77.3% are 85㎡ or smaller.
□ A rise in new subscribers with a home worth 600 million won or less or with a home outside the Seoul
Metropolitan Area
A study on the value of the properties used as collateral under the JTYK program shows a steady increase
in the proportion of those worth 600 million won or less in the last two years, from ▲ 93.1% in 2012 to
▲ 95.1% in 2013 and ▲ 95.6% in 2014. In addition, the percentage of JTYK subscribers with a property outside
Seoul and its vicinity has been increasing steadily over the same period, from ▲ 23.0% in 2012 to ▲ 26.6% in 2013
and ▲ 29.2% in 2014.
Increases in Collateral Properties Worth 600 Million Won or Less
□ A rise in JTYK subscription due to improvements to the program
Since HF expanded the eligibility for JTYK loans to those who own two or more homes, 319 homeowners
with multiple homes (196 temporary second home owners and 123 homeowners with two or more residential
properties with a combined value of 900 million won or less) have subscribed to the JTYK program.
* In March 2014, HF allowed second-home owners to take out a JTYK loan on their principal residence under
the condition that they sell the second home within three years from subscription.
** In November 2014, HF allowed multiple-home owners to take out a JTYK loan on their primary residence unless
the combined value of their homes exceeds 900 million won.
An HF official said, “The demand for JTYK loans will only continue to grow as they are now looked upon more positively
and considered to be a useful retirement-planning tool,” adding that to meet the rising demand, HF will continue
its efforts to improve the JTYK program.