The South Korean government has made its guaranteed reverse mortgage program available for more people.<br />Through this program, seniors can get regular monthly payments throughout the rest of their lives.<br />Our Eum Ji-young has more.<br />South Korea will lower the age eligible to apply for the government guaranteed reverse mortgage program from 60 to 55.<br />Finance Minister Hong Nam-ki announced during a meeting with economy-related ministers on Wednesday that in order to provide income security for seniors, homeowners aged 55 or older will be eligible to apply for the government backed reverse mortgage.<br />Currently, the program is only available for homeowners aged 60 or older.<br />The government will also allow properties of a slightly higher value to be eligible for the program.<br />The government-backed reverse mortgage program for seniors, the so-called JooTaekYeonKeum is for homeowners without a big enough monthly cashflow in their elderly years.<br />By collateralizing their home for the loan, seniors can create cash flows by receiving regular monthly payments throughout the rest of their lives.<br />This reverse mortgage program is attractive for seniors in South Korea because both the borrower and spouse can reside in their home while receiving payments.<br />Also, since the monthly payment is backed by the government, there is little risk of it being discontinued.<br />The change in the policy follows an increase in South Korea's average life expectancy.<br />Hong also announced that eligibility for the retirement and personal pension plan will be expanded.<br />Eum Ji-young Arirang News.<br />
