Loan Refinancing Used by 210,000 People for 10.9 Trillion Won... Villas and Offices Included from September

According to financial authorities' 'loan refinancing service,' approximately 210,000 borrowers have refinanced loans totaling 10.9 trillion KRW to date. The authorities plan to expand the refinancing service for villa and officetel mortgage loans starting from the third quarter, as KB Kookmin Bank is scheduled to provide market price information for apartments and villas with fewer than 50 households by September.

As of the day before, the financial authorities announced on the 18th that a total of 214,127 users have moved loans amounting to 10.8718 trillion KRW through the loan refinancing service. The average interest rate reduction was 1.52 percentage points, and the annual interest savings per person reached 1.64 million KRW.

By loan type, 176,723 people used the credit loan refinancing service, moving 4.1764 trillion KRW in loans. The average interest rate reduction was 1.57%, with interest savings of 580,000 KRW. For mortgage loans, 26,636 borrowers moved 4.8935 trillion KRW, receiving an average interest rate reduction of 1.49 percentage points and annual interest savings of 2.73 million KRW. Jeonse loans were refinanced by 10,768 people, moving 1.8019 trillion KRW, with an interest rate reduction of 1.42 percentage points and interest savings of 2.38 million KRW.

The 'Mortgage Refinancing' service through an online, one-stop refinancing infrastructure surpassed 10,000 applicants within 15 days of its launch, with the application amount approaching 1.8 trillion won. The photo shows an ATM of a commercial bank installed in Yongsan-gu, Seoul, on the 25th. Photo by Jinhyung Kang aymsdream@

The authorities are also exploring ways to improve the loan refinancing service. First, KB Kookmin Bank plans to provide KB real estate market prices for apartments and villas with fewer than 50 households by September. This is because financial companies need to verify reliable real-time market price information on the collateral housing to offer new mortgage loan interest rates and limits to borrowers. Accordingly, refinancing for villa and officetel mortgage loans is expected to become possible starting in September.

The Housing and Urban Guarantee Corporation (HUG) plans to ease the burden of the jeonse deposit return guarantee fee imposed on borrowers when refinancing jeonse loans. To this end, HUG is currently discussing specific reform directions with banks and plans to establish concrete measures within the year, including refunds for any excess payments.

Additionally, Woori Bank plans to implement a 'visiting loan refinancing service' starting in October, and Shinhan Bank intends to simplify service use by improving its application to provide detailed guidance on the Debt Service Ratio (DSR) situation when borrowers refinance despite a decrease in income after the existing loan.

An official from the authorities stated, "The government has identified and pursued various improvement tasks so far and will continue to enhance the loan refinancing service to promote competition in the financial sector and help users reduce their interest burdens."

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