HF Construction, Housing Pension System Improvement... Partial Refund of Initial Guarantee Fee if Canceled Within 3 Years of Enrollment

Korea Housing Finance Corporation logo.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] Korea Housing Finance Corporation (HF) will refund a portion of the initial guarantee fee if the housing pension is canceled within 3 years of enrollment starting from the 12th.

The initial guarantee fee for the housing pension is set at 1.5% of the housing price (1.0% for loan repayment method) when first enrolling in the housing pension.

Currently, the initial guarantee fee paid once is not refunded in principle even if the housing pension is canceled, but from the 12th, if the subscriber cancels the housing pension within 3 years from the initial loan execution date, a portion of the initial guarantee fee will be refunded.

For existing subscribers, those who have used the service within 3 years of enrollment are eligible, and for new subscribers, only cancellations within 3 years apply.

If the subscriber withdraws the agreement within 30 days from the loan execution date, a full refund is possible.

The refund amount is calculated in a way that gradually decreases as the usage days increase and varies depending on the initial guarantee fee paid by the customer and the pension usage period.

However, if the housing pension is canceled early, only a portion of the initial guarantee fee is refunded, and subscribers should be aware that there is a 3-year restriction on re-enrollment for the same house and that financial costs such as stamp tax may increase upon re-enrollment.

President Choi Jun-woo said, “With this system improvement, we hope that customers who hesitated to enroll due to the burden of the initial guarantee fee will be able to use the housing pension more conveniently,” and added, “The corporation will continue to promote improvements to the housing pension system by reflecting customers’ voices.”