Expansion of Publicly Announced Price for Housing Pension Enrollment to 1.2 Billion KRW or Less ... Monthly Payment Increased by up to 20%

Korea Housing Finance Corporation will expand the official property price criteria for houses eligible for the Housing Pension from "900 million KRW or less" to "1.2 billion KRW or less," starting from the 12th. An official property price of 1.2 billion KRW corresponds to a market price of approximately 1.7 billion KRW.

The upper limit of the "total loan limit" for Housing Pension subscribers will also be raised from 500 million KRW to 600 million KRW starting on the 12th.

The total loan limit is the present value of the monthly payments, etc., that a Housing Pension subscriber will receive until the age of 100. With the increase in the total loan limit, the monthly payment (pension) received by new Housing Pension subscribers after the 12th will increase by up to 20%.

The increase in monthly payments for Housing Pension subscribers due to the rise in the total loan limit ceiling varies depending on the subscriber's age and the house price.

For example, a 65-year-old subscriber who joined the Housing Pension with a house valued at 1.2 billion KRW has a total loan limit of 565 million KRW but currently receives a monthly payment of 2,615,000 KRW due to the 500 million KRW limit.

If they apply under the same conditions after the 12th, the monthly payment will increase by 342,000 KRW (13%) to 2,957,000 KRW.

On the other hand, a 65-year-old person owning a house valued at 1 billion KRW will continue to receive the same monthly payment of 2,457,000 KRW after the 12th.

This is because the total loan limit in this case is 471 million KRW, which is less than 500 million KRW, so the increase in the ceiling does not apply.

Existing Housing Pension subscribers who are not new applicants must cancel their current Housing Pension contract and re-enroll within six months after the 12th to benefit from the increase in monthly payments due to the higher total loan limit. However, in this case, they must first repay the outstanding Housing Pension loan balance with their own funds before re-enrolling.

Korea Housing Finance Corporation will cover the appraisal fee on behalf of subscribers who own a single house valued under 200 million KRW and join the Housing Pension after the 12th.

Currently, when joining the Housing Pension with a house appraised at 180 million KRW, the subscriber must pay an appraisal fee of 389,000 KRW.

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