“ Pre-joining of JTYK to Relieve the House Poor in their 50s to Start in June ”

- Both the homeowner and his/her spouse must be at least 50 years old and own only one house valued at less than KRW 600 million to be eligible; allowed only to pay back the current mortgage.

- Lump-sum withdrawals are permitted up to 100% of the loan limit to pay back current debts

- If there is any outstanding balance after paying back debts, a pension is offered when the younger spouse reaches 60

- Goes into effect temporarily for one year beginning in early June

Beginning in June, homeowners can join JTYK (JooTaekYeonKeum) to pay back their current mortgage loans.

The Korea Housing Finance Corporation (KHFC) announced on May 28 that it will launch the Pre-joining JTYK product on June 3 for the house poor who are at least 50 years old and are struggling to pay back the principal and interest on their mortgage loans.

* House poor refers to homeowners who pay such a large portion of their disposable income toward paying back their loans that they have too little remaining to live on.

The pre-joining of JTYK allows homeowners of a single home valued at less than KRW 600 million to use lump-sum withdrawals up to 100% of the loan limit to pay back their current mortgage loans and live in that house for life. Both the homeowner and his/her spouse must be at least 50 years old to be eligible. Also, if borrowers of pre-joining JTYK still have a balance after paying back debts, a monthly pension is paid out for the rest of their lives when the younger spouse becomes 60 years old.

However, the JTYK program to receive a fixed monthly pension for life is allowed only when both the homeowner and his/her spouse are at least 60 years old, as is the case now. If the amendment of the KHFC Act, currently pending at the National Assembly, is approved, JTYK will be allowed even when only the homeowner is at least 60.

“The new pre-joining of JTYK is expected to alleviate the hardships of homeowners in their 50s who face financial difficulties due to excessive balances of mortgage loans. KHFC will continue to serve as a housing financial institution that supports low-income citizens,” said KHFC CEO Seo.

For details, please call KHFC Call Center (1688-8114) or a KHFC branch (refer to the KHFC website).