HF Construction Extends Safe Conversion Loan Application Deadline Until End of October

Korea Housing Finance Corporation logo.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] Korea Housing Finance Corporation (HF) has decided to extend the application period for the Safe Conversion Loan by two weeks until the end of October to absorb fixed-rate conversion demand amid rising interest rates.

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

The loan targets are single individuals 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 early repayment fees.

The preferential Safe Conversion Loan interest rates range from 3.80% to 4.00% annually depending on the 10 to 30-year maturity, while 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 preferential Safe Conversion Loan is currently accepting applications smoothly by applying a stepwise reception based on housing prices and a weekday system according to the last digit of the birth year.

Applications can be submitted online via the 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.

An HF Corporation official stated, “Due to recent increases in the Bank of Korea’s base rate and the resulting volatility in market interest rates, it is a critical time for variable-rate borrowers who have not yet felt the actual rise in rates because the rate adjustment cycle has not arrived.”

The official added, “The second phase of applications, which will raise the housing price limit, is scheduled to begin on November 7, and detailed information on application requirements and methods will be separately announced at the end of October.”

The second phase of applications will operate on a five-day rotation system based on the last digit of the birth year.

As of the 17th day of the total 19-day application period for the third Safe Conversion Loan, 33,149 applications amounting to approximately 3.3109 trillion KRW had been submitted as of the 13th.

Applications for homes priced at 400 million KRW or less until the end of October are not subject to the five-day rotation system and can be submitted regardless of birth year.

Application Dates by Last Digit of Birth Year in Resident Registration Number.

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