2406 Applications and 238.6 Billion KRW Requested on the First Day of the Preferential Safe Conversion Loan

Korea Housing Finance Corporation logo.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Dooyul] The number of applications for the preferential-type Safe Conversion Loan reached 2,406 on the first day of acceptance, the 15th, with approximately 238.6 billion KRW applied for.

By application channel, 1,176 applications amounting to about 114.7 billion KRW were received through the Korea Housing Finance Corporation website and the Smart Housing Finance app, while 1,230 applications totaling about 123.9 billion KRW were received at the branches of Kookmin, KEB Hana, NongHyup, Shinhan, Woori, and Hana banks.

The preferential-type Safe Conversion Loan is a product that refinances variable or quasi-fixed rate mortgage loans secured by homes priced at 400 million KRW or less from first and second-tier financial institutions into long-term, fixed-rate policy mortgages.

Eligible borrowers are single individuals or married couples with a combined annual income of 70 million KRW or less, owning one home priced at 400 million KRW or less.

Eligible applicants can convert up to 250 million KRW of their existing mortgage loans into fixed-rate products without prepayment penalties.

The interest rates for the preferential-type Safe Conversion Loan range from 3.80% to 4.00% annually depending on the loan term of 10 to 30 years, while low-income youth under 39 years old with an income of 60 million KRW or less can receive rates from 3.70% to 3.90% annually.

The application process for the preferential-type Safe Conversion Loan is being smoothly conducted by staggering applications according to housing prices and applying a weekday system based on the last digit of the birth year to distribute demand.

The application period varies by housing price: owners of homes priced at 300 million KRW or less can apply during the first round from September 15 to 28, and those with homes priced up to 400 million KRW can apply during the second round from October 6 to 13.

Applications can be submitted online via the Korea Housing Finance Corporation website or the Smart Housing Finance app, and offline applications are also accepted at branches of Kookmin, KEB Hana, NongHyup, Shinhan, Woori, and Hana banks.

Table of Application Dates for Preferred Safe Conversion Loans by Housing Price and Birth Year.

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