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Hana Financial Group launches new reverse mortgage product aimed at older adults

Published: 26 May. 2025, 14:27 Updated: 26 May. 2025, 18:52

LIM JEONG-WON
[email protected]

A promotional image for Hana Financial Group's a new private reverse mortgage product, ″Hana The Next Home Pension″ [HANA FINANCIAL GROUP]

Hana Financial Group announced on Monday that it is launching a new private reverse mortgage product, “Hana The Next Home Pension,” to address postretirement income insecurity and residential stability among older adults.

Jointly developed by Hana Bank and Hana Life, the product allows homeowners and their spouses aged 55 or older to entrust their homes to Hana Bank and receive fixed monthly pension payments from Hana Life for life, even after one spouse passes away.

Sales began nationwide on Monday at Hana Bank branches, following regulatory approval as an innovative financial service from the Financial Services Commission in December.

Unlike government-backed reverse mortgage programs, Hana The Next Home Pension accepts properties valued above 1.2 billion won ($881,230) and permits participation even for households owning multiple properties.

The structure limits liability to the entrusted property, meaning heirs are not required to repay any shortfall if the total pension received exceeds the property’s sale value. Any surplus proceeds from a posthumous sale are passed on to the heirs.

Payment options include a flat monthly amount, front-loaded payments or incrementally increasing payments.

The product applies a fixed interest rate, set at 3.95 percent as of May, based on the previous month’s average 10-year treasury bond yield plus a 1.3 percentage point margin.

This offering is part of Hana’s broader Hana The Next initiative, launched in October last year to serve Korea’s aging population. The initiative also includes tailored asset management products, insurance plans and dedicated senior consulting lounges offering both financial and nonfinancial services, such as retirement planning, digital education and leisure programs.

“Hana Group will continue expanding its senior-focused services to support retirees in building more secure and dignified second chapters in life,” said a group official.

BY LIM JEONG-WON [[email protected]]