Safe Conversion Loan Reaches 10,771 Cases on Day 4... Application Volume Exceeds 1 Trillion Won

Korea Housing Finance Corporation logo.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] As of the 4th day of applications, on the 20th, a total of 10,771 applications for the preferential-type Safe Conversion Loan have been received, amounting to approximately 1.0104 trillion KRW.

Applications through the Korea Housing Finance Corporation website and the Smart Housing Finance app totaled 5,520, reaching an application amount of about 536.3 billion KRW. Applications received at the branches of Kookmin, KEB Hana, NongHyup, Shinhan, Woori, and Hana Banks totaled 5,251, with an application amount of approximately 474.1 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 primary and secondary financial institutions, into long-term fixed-rate policy mortgages.

The loan is available to single applicants with an annual income of 70 million KRW or less, or married couples with a combined annual income of 70 million KRW or less, who own 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 any 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 for the preferential-type Safe Conversion Loan is being smoothly conducted 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 varies by housing price: homeowners with homes priced at 300 million KRW or less can apply during the first round from September 15 to 28, while 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 the 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 that they check the rates to be applied in the future and actively take advantage of the Safe Conversion Loan opportunity.”

Application Dates by Housing Price and Birth Year.

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