Safe Conversion Loan, 490 Billion KRW Applied on Second Day of Launch

Safe Conversion Loans Total Approximately 2% of 25 Trillion KRW
5,105 Applications Submitted

On the 15th, when the preferential safe conversion loan that converts variable-rate mortgage loans to long-term, fixed rates starting at an annual 3.7% was launched, counselors at the Safe Conversion Loan Call Center in Mapo-gu, Seoul, were answering inquiry calls. Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Yoon-joo] The preferential-type Safe Conversion Loan, which converts variable-rate mortgage loans to long-term fixed rates as low as 3.7%, has received applications worth 490 billion KRW by the second day of acceptance.

According to the Korea Housing Finance Corporation on the 19th, a total of 5,105 applications were submitted as of the second day, September 16, since the launch of the preferential-type Safe Conversion Loan. The cumulative loan amount is approximately 490 billion KRW, about 2% of the total Safe Conversion Loan supply scale of 25 trillion KRW.

The Safe Conversion Loan is a product that reduces the economic burden on mortgage borrowers during periods of rising interest rates by refinancing variable or mixed-rate mortgage loans obtained from primary and secondary financial institutions into Korea Housing Finance Corporation’s policy mortgage with long-term fixed rates in the 3% range.

The loan interest rates range from 3.8% per annum (10 years) to 4.0% (30 years), and for low-income youth (aged 39 or younger with income under 60 million KRW), rates from 3.7% (10 years) to 3.9% (30 years) apply.

Applicants must be one-home owners with a combined spousal income of 70 million KRW or less and a home price (market value) of 400 million KRW or less. Loans can be granted up to a maximum of 250 million KRW within the existing loan balance.

The application period varies depending on the home price. In the first round (September 15?30), applications are accepted for homes priced up to 300 million KRW, and in the second round (October 6?17), for homes priced up to 400 million KRW.

Since the application days differ according to the last digit of the birth year in the resident registration number under a "day-of-week system," applicants must check their designated application day based on their birth year.

The application channels also vary depending on the institution handling the existing mortgage loan. Mortgages from the six major banks can be applied for through the existing loan bank’s online page or branch offices. For mortgages from other banks or secondary financial institutions, applications can be submitted via the Korea Housing Finance Corporation’s website or app.

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