Reverse Mortgage Cancellations Hit 4-Year High as Home Price Hopes Rise

Reverse mortgage cancellations are rising quickly as more homeowners expect housing prices to climb further. According to Korea Housing Finance Corp. (HF), cancellations reached 245 in March, the highest level in nearly four years since 246 cases in April 2022. In the first quarter of this year, cancellations totaled 695, up 36.8% from 508 in the same period last year. Monthly figures also rose steadily, from 222 in January to 228 in February and 245 in March. The reverse mortgage program allows homeowners aged 55 or older with homes valued at 1.2 billion won or less by official assessed price to pledge their homes and receive lifetime pension payments. Although the government has introduced measures such as higher monthly payouts and lower initial guarantee fees, financial industry observers say more people are choosing potential capital gains or inheritance transfers over pension income. Source: rss.donga.com