From the 12th, Home Pension Available for Homes Valued at KRW 1.2B or Less 

- Increase in the loan limit from KRW 50M to 60M raises monthly payments up to 20%

- Appraisal fee exempt for those with a single home valued below KRW 200M

Starting October 12, 2023, Home Pension will be available for new applicants whose home is valued at up to KRW 1.2 billion, an increase from the current KRW 900 million. The total loan limit* will also be raised from KRW 500 million to 600 million. Consequently, it is expected that new subscribers can enjoy an increase of up to 20%** in monthly payments. Moreover, HF will fully cover the appraisal fee*** for homeowners with a single home whose value is less than KRW 200 million.

 * Current value of the monthly payments, etc., that the subscriber will receive until reaching the age of 100 

 ** The specific increase depends on the subscriber's age and house price, and the monthly payment remains constant when the total loan limit is KRW 500 million or less.

 *** The appraisal service is utilized to assess home prices where market prices are unavailable on the Korea Real Estate Board and KB Internet. 

Korea Housing Finance Corporation (HF, CEO Choi Joon-Woo) stated on October 6, 2023, that the above changes will apply to new Home Pension applications submitted on October 12, 2023 onward.  

① Eligible public home price cap increased from KRW 900 million → KRW 1.2 billion

HF will increase the eligible public home price cap from KRW 900 million to KRW 1.2 billion. This amount, equivalent to approximately KRW 1.7 billion* at market prices and representing an expansion in eligibility, is expected to drive an increase in new subscribers.

 * Converted using the 2023 public price to market price conversion rate of 69.0% (Ministry of Land, Infrastructure and Transport) 

② Total loan limit for new applicants increased from KRW 500 million → KRW 600 million

 In line with the increase in the upper price limit of homes eligible for Home Pension, the total loan limit will be raised from KRW 500 million to KRW 600 million. This will raise the monthly payment for new subscribers by up to 20%, with the actual amount of increase depending on the subscriber’s age and house price.

For example, consider Customer A, a 65-year-old homeowner with a house valued at KRW 1 billion, joining Home Pension. In this scenario, the total loan limit is KRW 471 million, resulting in a monthly payment of KRW 2.46 million. As this amount falls below the KRW 500 million threshold, there is no change in the monthly payment despite the increased total loan limit. Conversely, Customer B, also 65 years old but with a house valued at KRW 1.2 billion, could have a total loan limit of KRW 565 million. If this customer subscribes to Home Pension immediately, the monthly payment would be KRW 2.61 million due to the current KRW 500 million upper limit. However, if the customer applies for Home Pension 12 days later, the monthly payment would increase to KRW 2.95 million.

③ Appraisal fee exempted for those with a single home valued below KRW 200M

Starting on the 12th, HF will cover the appraisal fee for those applying for Home Pension with a single home whose market value is below KRW 200 million. Presently, if a customer signs up for Home Pension with a home valued at KRW 180 million, the customer would pay an appraisal fee of KRW 389,000, and the appraisal fee exemption is currently applicable only for those subscribing to Preferential Home Pension*.  

An HF officer explained, “We anticipate a rise in new customer subscription with this system enhancement. By broadening the appraisal fee support scope, we aim to alleviate the cost burden on subscribers.”

For more details, please call HF's call center at 1688-8114 or visit any HF branch nationwide. Applications can be submitted by visiting the nearest HF branch, HF website (www.hf.go.kr), or through the Smart Housing Finance app.

※ Reference 1. Home Pension Overview and Subscription Procedures

   Reference 2. Q&A on Home Pension’s Expanded Home Eligibility and Increased Total Loan Limit