"Jeonse Fraud Victims Can Refinance at Lower Interest Rates Even Before Lease Contract Ends"

Support Rental Deposit Loan Available Even Before Lease Contract Ends
100% Loan Possible When Purchasing Damaged Housing

On the 2nd, the Ministry of Land, Infrastructure and Transport announced that from the 3rd, victims of jeonse fraud will be able to receive the Buteummok Jeonse Loan (refinancing) to reduce interest burden even before the lease contract ends while residing in the damaged housing. Additionally, the Didimdol Home Purchase Loan will be improved to be provided 100% without deducting the priority repayment amount.

Villa complex in the Huam-dong area, Yongsan-gu, Seoul.
[Photo by Yonhap News]

This is a follow-up measure to the "Strengthening Support Measures for Housing Stability of Jeonse Fraud Victims" announced on the 27th of last month, aimed at relaxing the requirements for policy loans exclusively for jeonse fraud victims. The goal is to reduce the victims' interest burden and support the smooth auction of the damaged housing.

According to the "Special Act on Support for Jeonse Fraud Victims and Housing Stability" (Jeonse Fraud Special Act), once a person is recognized as a victim of jeonse fraud, they can receive the relatively low-interest Buteummok Jeonse Loan (refinancing) even before the lease contract ends. Registration of lease rights is not required. The Ministry of Land, Infrastructure and Transport plans to expand the scope of support for victims through this. Previously, victims could only refinance the loan after the lease contract ended and one month had passed, and after completing the registration of lease rights.

When a jeonse fraud victim wins the auction for the damaged housing through the Didimdol Home Purchase Loan, they can borrow 100% of the auction price. Previously, victims could not receive 100% loans when purchasing the damaged housing through auction. Even when using the Didimdol Home Purchase Loan, they could only borrow an amount after deducting the priority repayment amount. In effect, loans were provided at about 80% of the auction price of the damaged housing.

Even if a jeonse fraud victim wins the auction for the damaged housing, the lifetime first-time homebuyer benefits of the Didimdol loan do not disappear. Typically, when purchasing a home through the Didimdol loan, benefits such as a 0.2 percentage point interest rate reduction and an increase in the loan limit from 250 million KRW to 300 million KRW are provided. If a jeonse fraud victim purchases the damaged housing through this loan, these benefits would normally disappear. To resolve this issue, support will be provided to defer the lifetime first-time homebuyer benefits.

Meanwhile, to apply for the exclusive loan for jeonse fraud victims, applicants can visit branches of the five nationwide Housing and Urban Fund trustee banks, including Woori Bank and Kookmin Bank.

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