Financial conglomerate, Hana Financial Group, introduces a novel reverse mortgage service targeted at senior citizens.
Hana Financial Group introduces a new private reverse mortgage product, "Hana The Next Home Pension," designed for homeowners with properties valued at over 1.2 billion won. This innovative offering allows homeowners to leverage their high-value residences as collateral, enabling them to reside in the property while receiving a pension until their demise.
Unlike conventional products, "Hana The Next Home Pension" is not limited to single homeowners, making it accessible to second homeowners as well. Key features of this product include the following:
- Eligibility: To be eligible, homeowners must possess properties worth more than 1.2 billion won, and relinquish ownership of the house to the bank.
- Pension Receipt: Homeowners are required to reside in the property serving as collateral, with temporary exceptions for health-related absences. The pension amount is substantial, valued higher than traditional housing pensions, reflecting the high-value properties used as collateral. A 65-year-old homeowner with a 2 billion won property might receive around 3.6 million won per month, with a maximum monthly pension of 10 million won.
- Financial Protection: The product features a non-recourse nature, limiting financial liability to the value of the house, ensuring that other assets remain untouched even if the accumulated pension exceeds the property's value.
"Hana The Next Home Pension" aims to support older adults with high-value properties, offering them a stable income stream while enabling them to continue residing in their homes.
- The government is considering implementing policies to encourage other financial institutions to follow Hana Financial Group's lead in offering innovative reverse mortgage products like "Hana The Next Home Pension," aiming to support the economy by providing financial security for older adults owning high-value properties.
- In response to Hana Financial Group's new reverse mortgage product, several industries such as real estate and pension consultation have expressed interest, as they see potential for growth in the business of serving homeowners with high-value properties.
- Education programs in personal finance might benefit from showcasing success stories like "Hana The Next Home Pension," as they strive to equip the younger generation with knowledge about better financial planning and smarter long-term investments in the business world.
