From the 12th, Home Pension Enrollment Available for Houses with Officially Announced Price Up to 1.2 Billion Won

Total Loan Limit Increased from 500 Million KRW to 600 Million KRW
Maximum Monthly Payment Increased by 20%
Appraisal Fee Exempted for Single-Homeowners with Loans Under 200 Million KRW

Yeomchang-dong Apartment. Photo by Jo Yongjun jun21@

Starting from the 12th, the official property price limit for houses eligible for the Housing Pension will be expanded from 900 million KRW to 1.2 billion KRW for new applicants. Additionally, the total loan limit ceiling will be raised from 500 million KRW to 600 million KRW. As a result, the monthly payment for new subscribers will increase by up to 20%. Furthermore, for homeowners with a single house valued under 200 million KRW who apply for the Housing Pension, the Korea Housing Finance Corporation will cover the entire appraisal fee. The Korea Housing Finance Corporation announced on the 6th that these changes will apply to new Housing Pension applicants starting October 12th.

The Korea Housing Finance Corporation is raising the eligible housing price from an official price of 900 million KRW to 1.2 billion KRW. When converted to market price, 1.2 billion KRW corresponds to approximately 1.7 billion KRW, expanding the eligibility and expectedly increasing new subscriptions.

Along with the increase in the eligible housing price for the Housing Pension, the total loan limit ceiling will be raised from the current 500 million KRW to 600 million KRW. Consequently, the monthly payment for new subscribers will increase by up to 20%, with the increase varying depending on the subscriber’s age and housing price.

For example, a 65-year-old customer owning a house with a market price of 1 billion KRW would have a total loan limit of 471 million KRW (receiving 2.46 million KRW monthly). Since this amount does not exceed 500 million KRW, there will be no change in the monthly payment due to the increase in the total loan limit ceiling.

On the other hand, a 65-year-old customer owning a house with a market price of 1.2 billion KRW currently has a total loan limit of 565 million KRW but is restricted by the current 500 million KRW ceiling, receiving 2.61 million KRW monthly. However, if they apply after the 12th, their monthly payment will increase to 2.95 million KRW.

For homeowners with a single house valued under 200 million KRW who join the Housing Pension, the appraisal fee will be covered by the corporation. Currently, customers applying for the Housing Pension with a house valued at 180 million KRW pay an appraisal fee of 389,000 KRW, and only preferential Housing Pension subscribers are exempt from this fee.

A representative from the Korea Housing Finance Corporation stated, “We expect an increase in new subscriptions through this system improvement,” adding, “With the expansion of appraisal fee support, the cost burden on subscribers is expected to decrease.”