Safe Conversion Loans Reach 68,273 Cases... Application Volume Approximately 8.5386 Trillion Won

Promotional image for Korea Housing Finance Corporation's Safe Conversion Loan.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] As of the 16th, the number of applications for the 3rd Preferential Safe Conversion Loan reached a total of 68,273 cases, with approximately 8.5386 trillion KRW applied for.

Applications through the Korea Housing Finance Corporation website and the Smart Housing Finance app totaled 34,065 cases, achieving an application amount of about 4.4944 trillion KRW. Applications received at the branches of Kookmin, KEB Hana, NongHyup, Shinhan, Woori, and Hana Banks totaled 34,208 cases, with an application amount of approximately 4.0442 trillion KRW.

The cumulative application amount is about 8.5386 trillion KRW, which is approximately 34.15% of the Safe Conversion Loan supply scale of 25 trillion KRW.

The Preferential Safe Conversion Loan is a product that refinances variable or quasi-fixed rate mortgage loans secured by homes priced at 600 million KRW or less from the 1st and 2nd tier financial institutions into HF Corporation’s long-term, fixed-rate policy mortgage loans with interest rates in the 3% range.

In the first phase of the Safe Conversion Loan application, which ran until the end of October, the housing price cap was 400 million KRW, but in the second phase, which began accepting applications on the 7th, the housing price cap was raised to 600 million KRW.

Additionally, the loan eligibility criteria were adjusted from single homeowners with an individual or combined spousal income of 70 million KRW or less to single homeowners with an annual income of 100 million KRW or less, and the loan limit was increased from 250 million KRW to 360 million KRW.

The interest rate for the Preferential Safe Conversion Loan ranges from 3.80% to 4.00% annually depending on the loan term of 10 to 30 years, and 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.

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, “There are only about 10 days left until the application deadline for the Safe Conversion Loan on December 30,” adding, “Refinancing will still be possible after the launch of the ‘Special Bogeumjari Loan’ next year, but since higher interest rates may apply, we hope applicants do not miss the opportunity to switch to the Safe Conversion Loan.”

Customers curious about the expected interest savings when using the Safe Conversion Loan can check on the Safe Conversion Loan information website.

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