Home Pension (Reverse Mortgage)
Public Announcement
Announcement 1
1 Meaning of Lump-Sum Withdrawals Open
- A lump-sum withdrawal refers to the amount that a Home Pension user sets in advance within a certain scope of the loan limit to withdraw in case the user needs large amount of money.
- The withdrawal must be used for purposes that are publicly announced on the KHFC webpage as below.
2 Purposes of Lump-Sum Withdrawals Open
| Category | ① General purposes | ② Loan repayment |
|---|---|---|
| Details of use | General expenses for elderly lifetime spending such as medical and educational expenses, home maintenance and repair costs, expenses for the four ceremonial occasions of coming of age, wedding, funeral, and ancestral rites ※Prohibited purposes - Home purchasing and rental - Speculative acts including gambling and speculation, spending on extravagances and entertainment, etc. |
Repayment of existing, - Mortgage loans, other loans, etc. - Jeonse (returnable lump-sum rental deposit) on which the right of jeonse remains established - Rental deposit paid under a lease agreement |
| Limit | Up to 50% of the loan limit (maximum KRW250 million) |
|
| Eligibility | Owner, his/her spouse, lineal family members and siblings of the owner or his/her spouse |
Credit secured by the house concerned |
| Application period |
One year before and after the actual payment date |
When applying for Home Pension |
3 Rationale for Restrictions on Purposes of Lump-Sum Withdrawals Open
Article 3-2 PAYMENT MEANS OF ANNUITIES, ETC. A specific amount of money shall be paid to the homeowner as needed within 50% of the loan limit, pursuant to Article 9, Subparagraph (4)-2 of the Korea Housing Finance Corporation Act, for any of the following purposes:
- To pay off the remainder of a mortgage held on a house
- To return a deposit to the lessee of a house under a lease contract thereon pursuant to Article 3, Subparagraph 3 here of or To serve other purposes such as medical expenses, educational expenses and home repair/maintenance expenses as prescribed by the President of the Corporation and published on the official website there of.