From the 10th, apartments subject to regulations exceeding 300 million KRW cannot receive jeonse loans

Reference image (Source=Yonhap News)

[Asia Economy Reporter Kim Hyo-jin] Starting from the 10th, if you purchase an apartment exceeding 300 million KRW in speculative areas and speculative overheating districts, jeonse loan restrictions will apply.

The Financial Services Commission announced on the 8th that this measure will be implemented as part of the government's 'June 17 Real Estate Measures.'

Accordingly, if you purchase a regulated apartment after receiving a jeonse loan guarantee from the 10th onward, the jeonse loan will be recalled.

Exceptions to the jeonse loan restriction include cases where the apartment is purchased for actual demand reasons such as job relocation, children's education, parental care, medical treatment, or school violence victimization, and the jeonse housing is obtained outside the special city or metropolitan city where the apartment is located.

It is also an exception if household members reside in both the purchased apartment and the jeonse housing.

If the purchased apartment still has an existing lease contract period remaining, the loan recall will be deferred during that period.

However, if the maturity of the current jeonse loan arrives first, it can only be used until that maturity. This means it is not possible to extend the jeonse loan maturity.

Additionally, from the 10th, the maximum jeonse loan guarantee limit by the Housing and Urban Guarantee Corporation (HUG) for homeowners will be lowered from 400 million KRW to 200 million KRW.

If the jeonse contract was signed before the 10th, the previous regulations will apply based on the borrower's proof.

For borrowers who own one house and used the jeonse loan guarantee before the 10th, the previous regulations will also apply when extending the loan, but the reduced limit will apply when obtaining a new loan such as for moving.

The Financial Services Commission explained, "The jeonse loan regulation of this measure fully applies only when both of the borrower's two active actions?purchasing a regulated apartment and applying for a jeonse loan?occur after the 10th."

Therefore, cases where the house price was below 300 million KRW at purchase but later exceeds 300 million KRW due to price increase, inheriting a regulated apartment, or purchasing a regulated apartment before the regulation enforcement date are not subject to the regulation.

If a borrower was using a jeonse loan before the regulation enforcement date and purchased a regulated apartment after the enforcement date, the loan is not subject to recall.

Also, if a borrower who applied for and is using a jeonse loan after the enforcement date purchases a pre-sale or occupancy right of a regulated apartment, the loan will not be recalled.

This regulation targets apartments with high concerns of gap investment, so it does not apply when purchasing non-apartment housing such as villas or multi-family houses.

This content was produced with the assistance of AI translation services.