Hana Financial Group said on Sunday it will expand and overhaul the service scope of its reverse mortgage product, Hana The Next My Home Pension, from April 1 for senior customers aged 55 and older who own homes valued above 1.2 billion won.

The My Home Pension is the financial sector's first and only reverse mortgage for homes valued above 1.2 billion won. It is a private housing pension product jointly developed by Hana Bank and Hana Life to address retirees' income gap after retirement and housing stability. Customers who sign up place their homes in trust with Hana Bank and receive monthly pension payments through Hana Life.

The biggest feature of the overhaul is an expansion of eligible subscribers. Previously, for homes in complexes pursuing reconstruction or redevelopment, properties at the stages of approval to establish an association or approval to implement a project were difficult to enroll because setting up a trust caused owners to lose their association-member status.

To address this, when customers who own reconstruction or redevelopment homes at the association-establishment approval stage or project-implementation approval stage sign up, the group will apply a mortgage lien method as an exception for a set period so they can keep their association-member status. After the home is completed and the registration transfer is finished, the collateral can be switched to a trust method.

It also said that when collateral homes of existing customers enter the association-establishment approval stage due to reconstruction or redevelopment projects, the collateral setting can be switched from the trust method to the mortgage lien method for a set period so customers can keep their association-member status, further improving the service's practicality and convenience.

In addition, it diversified the pension amount customers receive, widening their options. Based on customers' income and asset levels, it expanded the total available pension amount, on a present-value basis, from a single cap of 1.5 billion won to five types: 500 million won, 700 million won, 1.0 billion won, 1.3 billion won and 1.5 billion won.

By applying for a smaller monthly pension amount, customers can bequeath more remaining assets. By raising the monthly pension amount, they can be assured of a more ample retirement life. The group said it revised the service to meet a range of customer needs.

Customers can apply if both the person and spouse are aged 55 or older and have owned for at least 2 years a home they currently live in that has an officially assessed price above 1.2 billion won, registered in the person's name or jointly in the couple's names. They can join even if they own 2 or more homes.

Even if the pension amount received during the subscription period exceeds the home price, the product pays a lifetime annuity. It is a non-recourse structure that limits liability only to the trust home. After both spouses die, if the home sale amount is greater than the outstanding loan balance, the remaining assets are inherited, making it possible to preserve asset value.

A Hana Financial official said, "We expanded and overhauled the My Home Pension service so that many senior customers can be assured of stable housing and prepare for the future with reliable cash flow." The official added, "We will continue to expand an inclusive senior finance model for successful retirement solutions for the senior generation."