Preferred Safe Conversion Loans Received 5,105 Applications in Two Days... Approximately 490 Billion KRW in Scale

Korea Housing Finance Corporation Headquarters.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Dooyul] As of the second day of applications on the 16th, a total of 5,105 applications for the preferential-type Safe Conversion Loan have been received, amounting to approximately 490 billion KRW.

Applications through the Korea Housing Finance Corporation website and the Smart Housing Finance app totaled 2,597, with an additional 1,421 applications compared to the first day. The application amount was about 253.1 billion KRW, an increase of approximately 138.4 billion KRW from the first day.

Applications received at the branches of Kookmin, KEB Hana, NongHyup, Shinhan, Woori, and Hana banks totaled 2,508, with 1,278 additional applications. The application amount was about 236.9 billion KRW, an increase of approximately 113 billion KRW.

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

The loan is available to single applicants 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. Low-income youth aged 39 or younger with an income of 60 million KRW or less can receive rates between 3.70% and 3.90% annually.

The application process is being smoothly managed by staggering applications based on housing prices and applying a weekday system according to the last digit of the applicant’s birth year to distribute demand.

The application period is divided 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 at branches of Kookmin, KEB Hana, NongHyup, Shinhan, Woori, and Hana banks.

An HF Corporation official stated, “Customers using variable-rate loans who have not yet reached their interest rate adjustment cycle may not feel the impact of the increased loan rates, but we recommend checking the rates that will apply in the future and actively utilizing the opportunity to use the Safe Conversion Loan.”

Preferred Type Safe Conversion Loan Application Date Table by Housing Price and Birth Year.

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