[Breaking News] LTV Preferential Rate for Homeless and Genuine Buyers Increased from 10% to 20%P

[Asia Economy Reporter Koo Chae-eun] The Democratic Party's Special Committee on Real Estate announced on the 27th that it will expand the LTV (Loan-to-Value ratio) preferential level from the existing 10 percentage points (p) to 20%.

The Democratic Party's Special Committee on Real Estate announced the "Supply, Finance, and Tax Improvement Plan for Housing Market Stabilization" on the 27th, which includes this content.

The core is to relax and improve the LTV preferential requirements for the homeless and actual demanders. The combined income criteria for couples receiving LTV preferential treatment (0.8 → 0.9 billion KRW, first-time buyers 0.9 → 1 billion KRW) and housing price criteria (speculative 600 million → 900 million KRW, adjusted 500 million → 800 million KRW) were raised, and the preferential level was also expanded from 10 percentage points to a maximum of 20 percentage points.

The maximum loan limit is within 400 million KRW. However, when calculating DSR (Debt Service Ratio), young people with currently low income but high potential for future income increase will have their future income reflected.

Chairman Kim said, "As loan regulations related to mortgage loans have been continuously strengthened, there have been criticisms that the housing ladder has weakened, making it difficult for low-income and actual demanders to own homes. Therefore, support for homeownership for the homeless and first-time homebuyers has been expanded."

Additional support measures for vulnerable housing groups such as youth and newlyweds were also prepared. Support for youth monthly rent loans through the Korea Housing Finance Corporation's special guarantee was expanded from a limit of 70 million KRW per person to 100 million KRW, and the public jeonse loan deposit standard was relaxed from 500 million KRW to 700 million KRW. The loan support limit for the Bogeumjari Loan was also increased from 300 million KRW to 360 million KRW.

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