Interest in the special housing loan, which starts on the 30th of this month, is hot. Experts advise end-users considering switching from commercial bank home mortgage loans to special Bogeumjari loans to weigh the pros and cons.
According to the industry on the 13th, the government will operate a special bogeumjari loan for a total of 39.6 trillion won from the 30th for one year. Borrowers with a target house price of 900 million won or less can use it up to 500 million won without income restrictions within the limits of the collateral recognition rate (LTV, up to 70%, first-time purchaser 80%) and total debt repayment ratio (DTI, up to 60%). It is expected to help expand the loan limit for the low-income class as it is not subject to the Total Debt Repayment Ratio (DSR) regulation.
The loan interest rate is fixed, which is about 0.4 to 0.9 percentage points lower on average than commercial banks. If the house price is less than 600 million won and the married couple’s combined income is less than 100 million won, the annual rate is 4.65-4.95%, and if it exceeds 600 million won or the income is more than 100 million won, the annual rate is 4.75-5.05%. Loan interest rates are deducted by up to 0.9 percentage points for low-income young people, socially disadvantaged classes, and newlywed households. If the preferential interest rate is applied, the loan interest rate will be lowered by 3.75 to 4.05% per annum.
You can also apply for the purpose of purchasing a house (non-homeowners) or repaying existing loans and returning rental deposits (one-homeowners). In the case of a temporary second-home owner to acquire a replacement, it is possible to apply under the condition that the existing house be disposed of within two years.
According to Real Estate R114, 80% of apartments nationwide and 70% in the metropolitan area are eligible for this special Bogeumjari Loan, thanks to a higher house price standard than the existing Bogeumjari Loan. Seoul is estimated to have 34% of the target, and nowon, Dobong, and Jungnang-gu, where 8 out of 10 houses are less than 900 million won, are expected to benefit.
Experts predicted that although the loan interest rate is lower than that of commercial banks, the interest rate difference is not large, so it will be relatively advantageous for consumers who need more loan limits. It is also worth considering taking a special Bogeumjari loan because there is no early redemption fee, and then transferring it when interest rates are falling.
Lee Eun-hyeong, a researcher at the Korea Institute for Construction Policy Studies, said, “Consumers who have insufficient limits due to existing loans or want to change their loans to relatively low interest rates, and landlords who have difficulty returning deposits on jeonse, deserve attention.”
Reporter Kim Eun-jeong [email protected]
