Safe Conversion Loan, Applications Total 8.5386 Trillion Won... Application Deadline This Week

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

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] As of the 23rd, the number of applications for the 3rd preferential-type Safe Conversion Loan reached a total of 70,399 cases, with an application amount of 8.8355 trillion KRW.

Applications through the Korea Housing Finance Corporation website and the Smart Housing Finance app totaled 35,063 cases, achieving an application amount of 4.6384 trillion KRW. Applications received at the branches of Kookmin, KEB Hana, NongHyup, Shinhan, Woori, and Hana banks totaled 35,336 cases, with an application amount of 4.1971 trillion KRW.

The cumulative application amount stands at 8.5386 trillion KRW, which is about 35.34% of the Safe Conversion Loan supply scale of 25 trillion KRW.

The preferential-type Safe Conversion Loan is a product that refinances variable or quasi-fixed rate mortgage loans secured by houses 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 at an interest rate in the 3% range.

In the first phase of the Safe Conversion Loan application, which was conducted until the end of October, the housing price cap was 400 million KRW, but in the second phase of the Safe Conversion Loan, which began accepting applications from 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 preferential-type Safe Conversion Loan interest rates range from 3.80% to 4.00% per annum depending on the maturity period 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% per annum.

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, “Only five business days remain until the application deadline for the Safe Conversion Loan,” and added, “Those considering switching to the Safe Conversion Loan should hurry to apply.”

When switching to the Safe Conversion Loan, the prepayment penalty on the existing mortgage loan is waived. Also, if interest rates fall in the future and borrowers switch from the Safe Conversion Loan to a mortgage loan with a lower interest rate, refinancing can be done without any prepayment penalty.

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.