“Home Pension Offers Greater Accessibility and Satisfaction”

- HF set to ease eligibility requirements from Oct. 12 to offer greater stability in housing and income for the elderly

  - Home Pension to be available for owners of homes valued at up to KRW 1.2 billion and its maximum loan amount to be raised from the current KRW 500 million to KRW 600 million

Korea Housing Finance Corporation (HF, CEO Choi Joon-Woo) stated on August 29, 2023, that upon the amendment of the Enforcement Decree of the Korea Housing Finance Corporation Act, HF will raise ▲ the maximum home price eligibility for Home Pension from KRW 900 million to KRW 1.2 billion and ▲ the maximum loan amount* from KRW 500 million to KRW 600 million for those who apply for Home Pension from October 12, 2023, onwards.

 * The current cumulative value of the monthly payments subscribers will receive until they reach the age of 100

Currently, the amendment of the Enforcement Decree is waiting for the deliberation of the Financial Services Commission after public announcement. If it successfully passes through the related ministerial meeting and cabinet meeting, it will go into effect with the increased maximum loan amount on October 12, 2023, the effective date of the revised Act.

The upward adjustment in the maximum loan amount is designed to align the monthly payments with the rising housing prices. This adjustment can lead to a maximum 20% increase in the monthly payments. The specific increase depends on the subscribers' age and house price. If the maximum loan amount is KRW 500 million or less, the monthly payments will remain unchanged.

This change will apply to those who apply for Home Pension from October 12, 2023, onwards. Existing subscribers who become eligible for higher monthly payments with the increased maximum loan amount (from KRW 500 million to KRW 600 million) will be given the option to cancel their current Home Loan and apply for a new loan within six months of the effective date of the change.

An HF official said, “We anticipate a rise in Home Pension subscription with this enhancement. HF will remain committed to supporting housing stability and income security for elderly citizens.”

For further information, please reach out to HF's call center at 1688-8114 or its branches across the country. 

※ Reference

1. Q&A on the Expanded Home Pension Eligibility and Increased Loan Amounts

2. Overview of Home Pension