Korea Housing Finance Corporation (HF) will improve its policy so heirs can continue receiving the reverse mortgage when the user dies. It will also expand reverse mortgage support for ultra-low-priced dwellings.
On the 12th, Korea Housing Finance Corporation (HF) presented measures to boost reverse mortgages this year through its 2026 business plan materials. First, it will pursue institutional support so that children can use a reverse mortgage by using the collateral dwellings of a deceased reverse mortgage user. A reverse mortgage is a system in which a homeowner age 55 or older provides dwellings as collateral and receives a monthly pension for life from HF.
Until now, when a reverse mortgage user died, heirs were required to repay the aggregate of pensions paid to date, interest, and guarantee fees and then choose whether to take the collateral dwellings. However, HF will improve the system so heirs can use the inherited dwellings to repay the loan and continue receiving the pension without having to repay the parents' existing loan through other means.
In addition, to support vulnerable borrowers, it will increase preferential reverse mortgage support, such as expanding the support amount for ultra-low-priced dwellings. HF currently increases reverse mortgage payments by up to 18.4% for basic pension recipients who own dwellings worth less than 250 million won, and it is reviewing an additional increase for ultra-low-priced dwellings. The plan aims to strengthen old-age income security for vulnerable seniors.