Eun Seongsu
– Young adults and newlyweds will be able to receive ultra-long mortgage loans with maturities of up to 40 years. Borrowers who receive high-interest loans with an annual interest rate of over 20% are provided with special loan loan products for a limited time. The interest rate of’Sunshine Loan 17′, a loan product for ordinary people, is also lowered.
Lower interest rates for’Sunshine Loan 17′ for common people’s loans
Increased the limit of support for youth jeon and monthly rent loans
– On the 14th, the Financial Services Commission (Chairman Eun Seong-su, photo) announced the ‘2021 Focused Tasks’ with the above contents. Young adults and newlyweds who meet certain conditions such as income level will be able to use mortgage loans with maturities of up to 40 years. The longest maturity was increased by 10 years from the previous (30 years). In the case of a loan at 2.5% of an annual interest rate of 300 million won, the monthly repayment amount for 30-year maturity is 1185,000 won, but the 40-year maturity is 994,000 won. The government plans to specify the targets for support in the future, taking into account income levels and housing prices.
Youth jeon and monthly loans will also be expanded. The Financial Services Commission announced in March last year that it will abolish the total support limit so that it can fully respond to the demands of young people, after increasing the supply of jeon and monthly rental loans tailored to young people from 1.1 trillion won to 4.1 trillion won. The limit of support per person, which was set at 70 million won in deposit and 500,000 won in monthly rent, is also expected to be raised. Among the borrowers who use youth jeon and monthly rent loans, 30% of students with no income and those who are preparing for employment are.
Borrowers who receive a high interest rate loan of more than 20% per year are provided with a temporary loan (repaying the existing loan by receiving a new loan). This is due to the fact that it is impossible to extend existing loans under the same interest rate conditions due to the legal maximum interest rate cut. The financial authorities plan to provide loans for loans up to KRW 20 million to normal repayment borrowers who have been using loans exceeding 20% for more than one year or whose maturities are imminent within six months before the effective date of the maximum interest rate cut. Borrowers who received more than 20% of loans per year are about 2.39 million, with a total loan amount of 1.62 trillion won and an average interest rate of 24%.
The interest rate of the Sunshine Loan 17 loan, which is currently 17.9%, will also decrease. In July, the legal maximum interest rate will be lowered from the current 24% to 20%, making no significant difference from the Sunshine Loan 17. Sunshine Loan 17 is a high-interest-rate alternative product that did not allow the lowest creditor to be pushed into high-interest loans or private loans. An interest rate of 17.9% is applied and the limit is 7 million won (single limit). Sunshine Loan 17’s rate cut has not been set. Financial authorities will announce detailed plans during the first half of the year. Interest rate cut incentives are also expanding to induce borrowers who use Sunshine Loan 17 to repay sincerely. If a 3-year loan is repaid without arrears, the current 17.9% interest has gone down to 15.4% and 12.9% annually, but it will reduce a certain percentage each year from now on.
However, there are also skeptical opinions about this measure. The perspective of what’s the use of extending the loan repayment period or renting a monthly rent when the house price is not fixed. “It doesn’t matter whether the repayment period is 30 or 40 years,” said Kwon Dae-jung, professor of real estate at Myongji University. “I pointed out. Regarding this, an official from the Financial Services Commission explained, “Even if the maturity is 40 years, the average period of using the main body for reasons such as moving is 6 to 7 years on average.” .
Reporter Jiyu Hong [email protected]
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