"OK Even If Market Price Exceeds 900 Million"…KakaoBank Lifts Price Limit on Apartment Mortgage Loans

Loan Maximum Limit Raised from 630 Million to 1 Billion Won

[Asia Economy Reporter Minwoo Lee] KakaoBank is removing the price limit on mortgage loan products for apartments in the Seoul metropolitan area and raising the loan limit to 1 billion KRW.

On the 5th, KakaoBank announced that it will remove the price limit on mortgage loan products for apartments located in the Seoul metropolitan area with a KB Real Estate market price of 900 million KRW or less. The loan limit will also be raised from 630 million KRW to 1 billion KRW as early as this afternoon.

As a result, loans can now be obtained for apartments in the Seoul metropolitan area regardless of market price. However, loans for the purpose of home purchase or lease deposit refund are restricted for apartments priced over 1.5 billion KRW located in speculative and speculative overheated districts. Refinancing loans or general living stabilization funds are allowed. As of today, KakaoBank’s mortgage loan product interest rate is as low as 3.01% per annum (variable rate), and it varies depending on the loan period, grace period, and repayment method.

With these restrictions lifted, it is expected that more customers will flock to KakaoBank’s mortgage loans. Despite the 900 million KRW price limit, the cumulative contract amount exceeded 110 billion KRW by the end of last month, about two months after its launch in February. This is attributed to the active adoption of chatbots, enabling easy submission of documents, loan screening, and execution all via mobile. In fact, 94.5% of customers who used KakaoBank’s mortgage loan products did not require additional consultation.

Additionally, KakaoBank will waive all prepayment fees for customers who execute loans by the end of this year. This contrasts with commercial banks that typically charge prepayment fees up to 1.5% of the loan amount.

Meanwhile, to celebrate the expansion of mortgage loan eligibility, KakaoBank will hold a 'Limit Inquiry' event for one month starting from the 11th. By selecting 'Participate in Event' in the KakaoBank application (app) and checking the expected limit and interest rate, customers will be automatically entered into the draw. A total of 10,025 winners will be selected to receive various prizes such as refrigerators, TVs, washing machines, dryers, air purifiers, and ice cream mobile coupons.

A KakaoBank official said, "With this expansion, more customers will be able to use KakaoBank’s mortgage loans," and added, "We will continue to strive for easier and more convenient financial lives for our customers."

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