Jugeumgong, Safe Conversion Loan Eligibility Guide Starts from the 17th

[Asia Economy Reporter Eunju Lee] Korea Housing Finance Corporation will provide information on eligibility and application methods for the Safe Conversion Loan on the pre-notification sites of HF Corporation and banks (Kookmin, KEB Hana, NongHyup, Shinhan, Woori, and IBK) starting from the 17th.

The Safe Conversion Loan is a product that converts variable or mixed* rate mortgage loans obtained from primary and secondary financial institutions into HF Corporation’s long-term, fixed-rate policy mortgage to reduce the economic burden on mortgage borrowers during periods of rising interest rates. Applications will open from September 15. The loan interest rates range from 3.8% per annum (10 years) to 4.0% per annum (30 years), with lower rates of 3.7% (10 years) to 3.9% (30 years) applied to low-income youth (under 39 years old & income below 60 million KRW).

The online pre-notification site varies depending on the lending financial institution, so applicants should be cautious. Borrowers must check the specific guidelines on the bank site where their mortgage loan is currently held. If the mortgage loan was obtained from one of the six major banks, applicants should refer to that bank’s pre-notification site; for loans from other banks or secondary financial institutions, relevant information can be found on the HF Corporation website.

Eligibility can be immediately checked through a checklist including housing price, income, and number of houses owned. Applicants can also view their home’s market price and official assessed price (considering realization rate), allowing them to verify whether they meet the requirement of a housing price below 400 million KRW.

Selection of eligible applicants will be based on ascending order of housing price. Applications for homes priced below 300 million KRW will be accepted from September 15 to 28. If the total amount does not reach 25 trillion KRW, a second round of applications for homes priced below 400 million KRW will be accepted from October 6 to 13.

Choi Jun-woo, President of HF Corporation, stated, "The newly introduced preferential Safe Conversion Loan is being implemented with a shared review process between the corporation and the six major banks to minimize customer inconvenience caused by application and review delays." He added, "We recommend using the Safe Conversion Loan, which offers a fixed interest rate as low as 3.7% per annum until maturity."

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