For the average subscriber, the monthly payment under the home reverse mortgage will rise by about 3%, and the initial guarantee fee due at enrollment will be reduced. Starting next month, the total pension amount for new enrollees is expected to increase by up to 8.49 million won based on the average subscriber. From June, it will be possible to enroll in the home reverse mortgage even if not actually residing in the home due to reasons such as medical treatment.

The Financial Services Commission on the 5th announced the 2026 plan to improve the home reverse mortgage in order to revitalize the program.

The Financial Services Commission said it would reset the actuarial model for the home reverse mortgage and raise payments. The increase applies to those who enroll starting next month, and existing enrollees will not see their payments rise. Only owners of homes with an officially assessed value of 1.2 billion won or less can enroll.

For those enrolling on or after March 1, the monthly payment for the average subscriber (age 72, home price 400 million won) increases from 1,297,000 won to 1,338,000 won, up 3.13%. The total amount receivable over the entire enrollment period considering life expectancy is expected to increase by 8.49 million won.

Benefits for vulnerable older adults will be further expanded. If at least one spouse receives the basic pension and the couple owns a single home with a market value under 180 million won, they are expected to receive higher payments than standard enrollees by joining the preferential home reverse mortgage.

For example, if a 77-year-old subscriber with a home priced at 130 million won enrolls in the standard home reverse mortgage, they would receive 530,000 won per month; if eligible for the preferential type, the payment would rise to 654,000 won, an increase of 124,000 won.

The burden of enrolling will also be eased. Starting with enrollees next month, the ‘initial guarantee fee’ due at new enrollment will be cut from 1.5% to 1% of the home price, and the period during which the initial guarantee fee can be refunded upon termination will be extended from three to five years. However, to prevent a decrease in pension payments due to the lower guarantee fee, the annual guarantee fee paid each year will be slightly raised from 0.75% to 0.95% of the outstanding loan balance.

Currently, only actual residents can enroll in the home reverse mortgage, but from June enrollment will be allowed even if the borrower is not residing in the collateral home. Specifically, an exception will be possible for a one-home household owned by a couple who are not actually residing in the collateral home due to unavoidable reasons such as medical treatment, being cared for by their children, or moving into a senior residential welfare facility.

The process for a child to take over when a parent enrolled in the home reverse mortgage dies will also become simpler. If the child is 55 or older, they can receive payments using the same home as collateral after the death of the parent; however, until now they first had to repay, with their own funds, an amount equal to what the parent had received. But for those who enroll from June, the child can first take over the reverse mortgage and then flexibly use the resulting payments and their own funds to repay the debt.

According to the Financial Services Commission, as of the end of last year, the cumulative number of households enrolled in the home reverse mortgage was about 150,000 (2%), but it expects the participation rate to rise to 3% by 2030 thanks to these improvements. The Financial Services Commission and the Korea Housing Finance Corporation stated, “We plan to actively identify measures to favor regional enrollees in cooperation with relevant ministries going forward.”