HF KOREA-HOUSING FINANCE CORPORATION

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Mortgage

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Housing Guarantees(Individuals/builders)

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Reverse Mortgage Loan(JooTaekYeonkeum)

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About JTYK

JooTaekYeonKeum (reverse mortgage) helps you meet your living expenses while residing in your own home.

What is JooTaekYeonKeum?

JooTaekYeonKeum(JTYK) is a program for senior citizens who own homes but do not have cash income to receive monthly pensions in their golden years by putting up their houses as collateral.

Benefits of JooTaekYeonKeum
Benefits of JooTaekYeonKeum
Lifetime residence and lifetime payment Both the borrower and his/her spouse can keep their home and have a pension through the rest of their lives
Government guarantee Since the government guarantees JTYK. there is no risk of discontinuance of the pension
Low interest rate The interest rate on JTYK is lower than that on a regular mortgage loan. Avariable rate is applied(3-month CD rate + 1.1%)
low initial cost The registration tax, education tax, farming and fishing villages special tax and the obligatory purchase of National Housing Bonds are exempted.
Tax incentives In any tax year, 25% df the property tax is reduced But if the value of the house exceeds KRW 500 million, the tax credit is limited to 25% fo property tax based on KRW 500 million.

Eligible Borrower(Seniors, age 60 or older with only one house)

  • Age requirement
    • The homeowner should be at least 60 years old as of the date of guarantee application.
    • If the homeowner has a spouse, the spouse should also be at least 60 years old.

    ※ For instance, a 63-year-old homeowner with a 58-year-old spouse is not eligible.

  • One house per household’ requirement
    • As of the date of guarantee application, the applicant and his/her spouse must own only one house.

Eligible house

  • Housing prescribed in the Korean Housing Act(Detached houses, multi-units, row houses, apartments including residential-commercial complexes)
  • Senior welfare housing refers to sold senior welfare housing under the Welfare of the Aged Act, which has been reported to the local government concerned.
  • Property valued at no more than KRW900 million.
  • Property with no restriction of rights, mortgagee clause or lease contract
  • ※ If the homeowner can terminate mortgagee clauses or lease contract with a lump sum withdrawal, he/she can use JTYK with that house.

House price appraisal

House price appraisal method

  • Korea Appraisal Board's online market prices → Kookmin Bank's online market prices → Official housing prices announced by the Ministry of Land, Transport and Maritime Affairs (MLTM) → Korea Appraisal Board's appraised value applied

Cases not eligible for the JooTaekYeonKeum (JTYK) program

  • Officetels, commercial-residential buildings, commercial buildings, sales and business facilities, fields and paddies, etc.
  • Encumbrances indicated on a certified copy of the real estate register (application for an auction, attachment, preliminary attachment, injunction, provisional registration, etc.)

How to join the JTYK program when there exists any mortgage, entitlement to jeonse (returnable lump-sum rental deposit), or a lease agreement

  • A customer should terminate a lease agreement, etc. within one month from joining the JTYK program by making a JTYK lump-sum withdrawal.
  • Lump-sum withdrawals are permitted up to 50% of the loan limit (varies depending on individual customers; maximum KRW250 million).