Home Pension Becomes More Secure and More Convenient from June 1

- Preferential Home Pension expanding monthly payment support for owners of homes worth under KRW 180 million

- Owner-occupancy requirement waived at sign up for those who are hospitalized or in care

- Generational Continuity Home Pension reducing the burden of inheritance and sign-up for children

Korea Housing Finance Corporation (HF, CEO Kim Kyung-Hwan) announced on May 11, 2026, that from June 1, it will improve the Home Pension program to expand support for vulnerable elderly owners of lower-value homes and to make the program more convenient for subscribers.

The changes represent follow-up measures after the Home Pension Reform Plan* announced by the Financial Services Commission (FSC) in February. They cover three main areas: ▲ expanded Preferential Home Pension support for lower-value homes worth under KRW 180 million, ▲ exceptions to the owner-occupancy requirement at sign up, and ▲ the launch of the “Generational Continuity Home Pension.” The changes apply only to new applications submitted from June 1 onwards. 

* FSC, "An Era of 100-Year Lifespans: Expanding Home Pension Protection and Improving Convenience" (announced February 6, 2026)

Expanded Preferential Home Pension support for lower-value homes

Preferential Home Pension offers an increased monthly payment when at least one spouse is a recipient of the Basic Pension and the couple owns a single home with a combined market value of under KRW 250 million. Going forward, the monthly payment premium will be increased further for owners of lower-value homes worth under KRW 180 million going forward.

- Under the current scheme, the average Preferential subscriber in the under KRW 180 million bracket (age 77, home value KRW 130 million) receives a monthly payment 14.8%* higher than that under the Standard Home Pension. After the reform, this premium is rising to 20.5%*.

* Based on a standard home, the monthly-payment premium varies by housing type (standard home, elderly welfare housing, residential officetel), home value, and age.

Exceptions to the owner-occupancy requirement at sign up

The owner-occupancy requirement applied at sign up will also be partially eased. Until now, subscribers had to actually reside in the mortgaged home at the time of sign up. However, going forward, a couple owning a single home will be able to sign up even without residing there when there is an unavoidable reason, such as hospitalization, being cared for by a child, or moving into elderly residential welfare housing.

In such cases, the entire mortgaged home may also be rented out, allowing subscribers to use the Home Pension flexibly to suit their circumstances.

Launch of the "Generational Continuity Home Pension" 

In addition, the “Generational Continuity Home Pension” will be newly launched. Previously, when a Home Pension subscriber died and a child wished to take out a Home Pension on the same inherited home, the child first had to repay the parent's Home Pension debt with separate funds before being able to use the product.

With this new scheme, a child (aged 55 or over) applying for a Home Pension secured on the same home will be able to repay the parent's Home Pension debt using the lump-sum withdrawal facility* at sign up. To support smooth repayment, the lump-sum withdrawal limit will be raised from 50% of the loan limit** to up to 90%.

   * A facility allowing funds to be withdrawn, within a set proportion of the loan limit, for designated purposes (e.g., medical costs)

 ** The present value of the monthly payments (including lump-sum withdrawals) the subscriber would receive up to age 100

CEO Kim Kyung-hwan said, “These changes are designed to lower the barrier to taking out a Home Pension while expanding the benefits further,” adding, “We will continue to actively reflect the public's voice to make the Home Pension even more secure and convenient.” 

Consultations on Home Pension sign up are available through HF's Customer Center (1688-8114), and applications can be made by visiting your nearest HF branch.