“For the house price under KRW 200M, opt for the preferential type home pension“

-  Applied for new subscription from Sep 1, with subsidies for house valuation fees

Korea Housing Finance Corporation (HF, CEO Choi Joon Woo) announced on August 25 that from September 1, house value threshold for preferential-type home pension is lifted from market value of KRW 150 million to KRW 200 million. 

Accordingly, from September 1, new subscribers to home pension who owns a house with less than KRW 200million market price can choose preferential-type home pension and receive max. 21% more monthly payment than other home pension types throughout their remaining years. 

Before the product improvement, where the house price is between 150million and 200million, only general home pension type was available for the homeowners. However, with the change, they now can opt to the preferential type for more monthly payment. 

In addition, from Sept. 1, HF provides house price appraisal fees where there is no market price information available for the houses of new subscribers. Accordingly, when an owner of a house valued at KRW 160million subscribes to the home pension, the subscriber can save the appraisal fees of about KRW 360,000 (entire amount including all the actual expenses).

* Market prices based on the Korea Real Estate Board and KB Internet

※ House Price Appraisal Method: 1)Korea Real Estate Board market price → 2)KB Internet market price→ 3)Declared Value → 4) Appraised price

HF CEO Choi commented, ”Considering the recent house price hikes have narrowed the windows for preferential-type home pension subscription*, house price threshold was lifted to reflect the changes to keep the option effective. Going forward, we will continue to make improvements to the home pension to better support the livelihood of seniors.“

* The ratio of potential subscribers whose house value is less than KRW 150 million (Among homeowners aged 65 or older): Low 56%  (in 2016, the year of preferential type launch)→ Low 44% (in 2021) (Source: Household Finance Welfare Survey, Statistics Korea)

For more information on the eligibility criteria and terms & conditions of the eligibility retention for the preferential-type home pension, visit HF website or call HF Call Center(1688-8114).