Regional Subscribers with Home Loans to Receive Health Insurance Premium Deductions Starting Next Month

740,000 Households Monthly 22,000 Won Decrease

Starting next month, health insurance regional subscribers who purchase a home with a mortgage loan for actual residence or receive a jeonse loan will be eligible for a deduction on their loan amount. This is in accordance with the 'Regional Subscriber Housing Finance Debt Deduction System' effective from September 1. It is estimated that the health insurance premiums of 740,000 households out of 8.59 million regional subscriber households will decrease by an average of 22,000 KRW per month.

According to the National Health Insurance Corporation on the 31st, the eligible applicants are regional subscribers who, as of the application date, own one household with one house with a publicly announced land price of 500 million KRW or less, or one household without a house with a jeonse or monthly rent deposit of 500 million KRW or less. Eligible loans include mortgage loans, Bogeumjari loans, jeonse deposit loans, and jeonse deposit secured loans borrowed from financial institutions such as banks, securities companies, insurance companies, savings banks, local agricultural cooperatives, and lending companies, excluding credit loans or private loans between individuals. The loan must be taken within three months before or after the earlier date between the house acquisition date or the move-in date.

For homeowners, 60% of the loan balance is multiplied and deducted from the property tax base. Considering that high-asset borrowers who borrow large amounts of money could receive more benefits, the maximum deduction amount is limited to 50 million KRW (equivalent to a loan principal of about 83 million KRW). For tenants, 30% of the loan amount is applied, and the maximum deduction is 150 million KRW (equivalent to a loan principal of about 500 million KRW). If a one-household one-house owner lives in another house as a tenant, only the mortgage loan is eligible for deduction.

For example, regional subscriber A, who borrowed 100 million KRW to purchase a 300 million KRW house and resides there, currently pays a property insurance premium of 95,460 KRW per month, but from September, after deducting the basic deduction of 5 million KRW and debt of 50 million KRW, the premium will decrease to 70,620 KRW. Subscriber B, who took a jeonse deposit loan of 180 million KRW and lives in an apartment with a deposit of 200 million KRW and monthly rent of 500,000 KRW, will receive a deduction of 54 million KRW, which is 30% of the debt, reducing the property insurance premium significantly from 65,690 KRW to 4,510 KRW.

If the publicly announced housing price was 500 million KRW or less at the time of application, making the debt eligible for deduction, the deduction can still be received even if the announced price increases later. The deductible loan amount is recalculated every November based on the loan balance, so if the loan is partially or fully repaid, the insurance premium may change according to the remaining loan balance. If the eligibility requirements are met, applicants must prepare loan information verification documents and apply through the National Health Insurance Corporation website, mobile application (app), or local NHIC branch to receive the benefits.

An NHIC official explained, "Since accepting applications for housing finance debt deductions from July, 122,559 households have applied so far. Among them, about 56,800 households confirmed to be eligible will receive the revised insurance premiums starting in September."

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