16,000 Apply for Refinancing Mortgage Loans Worth 2.9 Trillion Won

The mortgage refinancing service has seen approximately 16,000 applicants and about 2.9 trillion KRW in application amounts within just 14 business days since its launch. Notably, borrowers who completed refinancing experienced an average interest rate reduction of 1.55 percentage points, resulting in an annual interest savings of 2.98 million KRW.

The Financial Services Commission announced on the 30th that from the 9th to the 26th, a total of 16,297 borrowers applied for the mortgage refinancing service over 14 business days, with the total loan application amount reaching approximately 2.9 trillion KRW.

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

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According to the Financial Services Commission, 1,738 borrowers have completed mortgage refinancing, with the total amount refinanced reaching 334.6 billion KRW. Borrowers who switched to lower-interest mortgage loans saw an average interest rate drop of 1.55 percentage points and an annual interest savings of 2.98 million KRW per person. Additionally, their credit scores increased by an average of 32 points (KCB, as of the 19th).

Since the launch of the mortgage refinancing service, many banks have lowered interest rates not only for refinancing but also for new mortgage loans. The authorities interpret that the refinancing service has stimulated interest rate competition in the financial sector, leading to an overall decrease in the interest rates experienced by financial consumers.

The credit loan refinancing service is also showing visible results. According to the Financial Services Commission, since its launch at the end of May last year until the 26th, about 118,773 borrowers have moved to loans with lower interest rates over approximately eight months. The total loan transfer amount reached about 2.7064 trillion KRW. These borrowers enjoyed an average interest rate reduction of 1.6 percentage points and an annual interest savings of 570,000 KRW per person. Their credit scores also increased by an average of 36 points.

An official from the financial authorities stated, "Many citizens are reducing their loan interest costs through the credit and mortgage refinancing services," adding, "Starting from the 31st, jeonse loans will also be able to be refinanced at lower interest rates, which is expected to further alleviate the interest burden for more financial consumers."

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