KakaoBank Launches Special 1 Trillion KRW Housing Mortgage Loan with Minimum Annual Interest Rate of 3.57%
by Sim NaYoung
Published 20 Apr.2023 09:58(KST)
Interest Rate Discount for First-Time and Same-Bank Jeonse Deposit Loan Customers
Up to 0.7% Point Benefit
Expanded from Apartments to Multi-Unit and Row Houses
Check Limit and Interest Rate in 3 Minutes 29 Seconds
KakaoBank announced on the 20th that it will offer a special home mortgage loan promotion with a minimum annual interest rate of 3.57% (as of the 20th) from the 20th until June 30, with a limit of 1 trillion KRW to commemorate the expansion of its home mortgage loans.
The special home mortgage loan promotion, following the one in February, is provided in the form of interest rate discounts. Customers purchasing a home for the first time in their life and those who have used KakaoBank’s monthly rent deposit loan for more than one year will each receive a 0.2 percentage point interest rate reduction benefit. For non-grace period loans, an additional 0.3 percentage point benefit is applied, allowing for a maximum interest rate discount of up to 0.7 percentage points compared to the initially expected rate. Separately from this promotion, the existing interest rate discount of up to 0.6 percentage points for customers refinancing from other banks will also be maintained.
With the maximum interest rate discount applied, the minimum annual interest rate based on a mixed rate is 3.57%, which is the lowest level in the financial sector. However, the promotion may end early if the limit is exhausted.
From the 20th, KakaoBank will expand the home mortgage loan targets from existing apartments to include row houses and multi-family houses. Row houses and multi-family houses can also be conveniently accessed 100% non-face-to-face through a chatbot function with a conversational interface, allowing for document submission, loan screening, and execution. The average time required to check the limit and interest rate is 3 minutes and 29 seconds.
As a result of introducing an automatic real estate value assessment system, the loanable limit and interest rate can be checked as quickly as for apartments. Additionally, based on an automated collateral classification system, customers can easily find eligible loan properties by simply entering the address, regardless of the type of collateral. However, for row houses and multi-family houses, only those whose market price can be determined by KakaoBank’s internal price assessment system are included as loan targets.
As with existing home mortgage loans, the early repayment fee is fully waived. The loan term can be selected from a minimum of 15 years up to a maximum of 45 years (for youth). The loan limit is up to 1 billion KRW.
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