HF Adjusts Monthly Payments for New Home Pension Applicants This March

- Home Pension monthly payments down by 1.8% on average compared to the previous year

- This change does not affect the existing Home Pension subscribers and those who have completed their application by the end of this February 

Korea Housing Finance Corporation (HF, CEO Choi Joon Woo) stated on January 31, 2023, that it will adjust Home Pension monthly payments for applicants from March 1. 

Under the Korea Housing Finance Corporation Act, HF adjusts the amount of Home Pension monthly payments each year after considering the ▲ house price growth rate, ▲ interest rate trends, ▲ life expectancy changes according to the Life Table, and other key variables and presents it to the Housing Finance Steering Committee for deliberation before determining the annual adjustment.

With this year’s annual recalculation, new Home Pension applicants from March 1, 2023, will see a 1.8% drop in their monthly payments from a year earlier. This decrease is due to the lower-than-expected house price growth rate, rising interest rates, and increasing life expectancy.

This annual monthly payment adjustment does not affect existing subscribers and those who have completed their application by February 28, 2023, regardless of future changes in their home value.

HF CEO Choi commented, “To enable a financially stable retirement for senior citizens, our Home Pension program has eased its qualification requirements, diversified its payment methods, and provided stronger payment protection. These efforts have brought the cumulative total of Home Pension subscriptions to over 100,000 since its launch in 2007. We will continue to push for improvements to the program this year, including raising the maximum home price eligible for Home Pension from KRW 900 million to KRW 1.2 billion (according to the recent amendment to the Korea Housing Finance Corporation Act), to provide greater support for older adults throughout their retirement.” 

For those who are considering Home Pension, please contact HF (1688-8114) for consultation. For subscription, please visit a nearby HF branch or submit an application at HF’s official webpage (www.hf.go.kr) or its Smart Home Pension mobile application.