HF Construction Revises Housing Pension Collateral Setting Method ... Existing Housing Pension Subscribers Can Also Use Trust Method

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] Housing Finance Corporation's housing pension subscribers can now change the housing pension collateral setting method from mortgage right method to trust method or from trust method to mortgage right method anytime they wish.

The housing pension is a financial product guaranteed by the corporation that allows the elderly to provide their owned residence as collateral and receive lifelong monthly pension loans.

At the time of subscription, customers must choose one of two collateral setting methods: mortgage right method or trust method, and until now, the chosen collateral setting method could not be changed.

However, due to system improvements, subscribers can now change to the trust method anytime they want, and conversely, customers who initially chose the trust method can switch to the mortgage right method.

However, if the subscribed house is a mixed-use house (commercial-residential house), or if it is a house of farmers or fishermen whose ownership cannot be transferred according to the 'Farmland Act', or if there is unpaid rent on the subscribed house, or if illegal construction is confirmed through documents, or if the existing housing pension payments are suspended, changing to the trust method is restricted.

Additionally, during the conversion processing period, existing pension benefits can still be enjoyed, and the monthly payment amount will not change.

Customers who wish to change to the trust method can request prior telephone consultation related to the system through the corporation's call center or website.

After prior telephone consultation, customers can visit designated locations such as branch offices on their desired date for formal consultation and proceed with the change procedure.

A corporation official said, "When switching to the trust method, the ownership of the house is transferred to the corporation, so when the subscriber and spouse pass away, the trust termination procedure for transferring ownership to children takes slightly longer than the mortgage right method," and advised, "We recommend discussing with children or others before making the change."

President Choi Jun-woo said, "With the system improvement, even if a specific collateral setting method was previously chosen, customers can now change the collateral setting method anytime according to their situation," and added, "The corporation will continue to strive to enhance product quality and user convenience by expanding customer choice."

This content was produced with the assistance of AI translation services.