From September 15, the government will accept applications for preferential safe conversion loans that change to a fixed interest rate of at least 3.7% without prepayment fees.
This is a loan for low-income earners with a house price of 400 million won and an income of 70 million won or less (couples combined).
The Financial Services Commission announced on the 10th that it would start applications from September 15th after giving advance notice on the website of the Korea Housing Finance Corporation and six banks including Kookmin, Nonghyup, Woori, Hana, and IBK on the 17th.
The FSC estimates that between 230,000 and 350,000 people will be able to benefit. This year’s supply is 25 trillion won.
The target of the safe conversion loan is the variable rate or semi-fixed rate mortgage loan that was handled in the first and second financial institutions before the advance notice on the 17th. Policy mortgages with maturities of 5 years or longer and interest rates completely fixed until maturity, such as mortgages, Bogeumjari loans, qualifying loans, and stepping stone loans are excluded.
This is for single-family homeowners with a married couple’s combined income of 70 million won or less and a house price of 400 million won or less. When submitting an application, use the market price of the house (KB market price, Korea Real Estate Agency market price) first, but if there is no market price, use the published price and realization rate.
When canceling the existing main loan for repayment of a safe conversion loan, the prepayment fee of financial institutions is exempted, and the interest rate is applied at a maximum of 250 million won within the scope of the existing loan at 3.80~4.00% and 3.70~3.90% for low-income youth until maturity. With a fixed interest rate, the principal and interest remain the same even if interest rates rise in the future.
From the 15th of the following month to the 13th of October, the applicants are selected through the application and reception in the order of the housing price, and then the evaluation is carried out sequentially.
The application/receipt location is different depending on the existing main financial institution. Kookmin, Shinhan, Nonghyup, Woori, Hana, IBK, etc. 6 major commercial banks borrowers apply and receive applications at the respective banks (branches/online), and other banks and secondary financial institutions borrowers are provided by the Housing Finance Corporation (website). · Apply through mobile application).
Loans are completed sequentially within two months on average from the date of application, and the borrower will receive the interest rate on the safe conversion loan from the month it is repaid with the safe conversion loan.
Meanwhile, the FSC announced that it would cut the interest rate on the Bogeumjari Loan by up to 0.35 percentage points from the current level and freeze the interest rate until the end of the year, along with preparations for the release of the safe conversion loan.
Accordingly, the Bogeumjari Loan interest rate, which is currently 4.60-4.85% per annum (0.1% point preferential when applying online), will drop to 4.25-4.55% from the 17th and will be maintained until the end of the year.
Inquiries: Financial Policy Division, Financial Policy Bureau, Financial Services Commission (02-2100-2843)
Tags: Safe conversion loan lowest fixed interest rate Apply #15th month Policy News news
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