Couples with Combined Annual Income up to 130 Million KRW Eligible for 'Special Housing Allocation' When Having a Child... Launch of 'Newborn 3-Piece Set'

#There is a couple A who each earn an annual income of 50 million KRW, totaling 100 million KRW. They have deep concerns about housing after marriage. Since their combined income is recorded as 100 million KRW after marriage, it becomes difficult to use the Didimdol loan, which limits the income requirement to 70 million KRW. The Didimdol loan is a system that allows purchasing a house at an interest rate lower than the market rate. Without using such policy financing, the interest burden is considerable, so couple A is postponing their marriage.

This concern is expected to ease in the future. The government announced the "Newborn Baby Triple Package" in the 2024 budget on the 29th to ensure that housing issues do not become a reason to delay marriage and childbirth. The main point is that couples who have newborns can receive more benefits such as policy financing when purchasing housing. In short, couples who have a newborn within 2 years will find it easier to get a Didimdol loan. The income limit of 70 million KRW per year will be raised to 130 million KRW only for couples who have newborns. Therefore, couple A will be able to get a Didimdol loan if they marry and have a child.

#There is couple B who have plans to have children but have not decided yet. They think they need a larger space to raise their child after birth, but it is not easy to get a housing unit through pre-sale. This is because households with newborns can only apply under the newlywed category, which has high competition rates.

In the future, couple B’s chances of successful pre-sale will increase. When a newborn is born, they no longer need to compete with newlyweds without children or single young adults for housing rights. The government plans to newly establish a "newborn category" in both special pre-sale and priority rental allocation types. Couples can use this separate newborn category to reduce competition rates. Their priority for rental housing applications can also increase. The purpose is to enable housing stability simultaneously with childbirth.

[Image source=Yonhap News]

#There is a dual-income couple C with a combined pre-tax annual income of 68 million KRW. They had a child in June this year. They plan to move to a larger home for child-rearing and need an additional loan of 300 million KRW, but they are worried about the high interest rates.

In the future, their interest cost burden will also decrease. If they had taken a 300 million KRW loan through the Didimdol loan from a commercial bank, the annual interest would be about 6 million KRW. However, with the government’s expanded interest rate benefits, they can use a special Didimdol loan system for 5 years at a lower interest rate (from 2% to 1.6% as an example). The government allows dual-income households with high income to borrow up to 500 million KRW at 2-3 percentage points lower than market interest rates. In this case, the annual interest would be 4.8 million KRW, saving them 1.2 million KRW in interest annually.

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