Didimdol Loan Interest Rate Further Reduced... Easing Housing Cost Burden for Non-Homeowners with Actual Housing Needs

(Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] The government will further reduce the interest rates on Didimdol loans to lower the housing cost burden for non-homeowners with actual housing needs.

The Ministry of Land, Infrastructure and Transport announced on the 28th that, as a follow-up measure to the 'Chuseok Livelihood Stabilization Plan' jointly announced by related ministries last September, it will lower the interest rates on Didimdol loans (purchase funds) from the Housing and Urban Fund.

The general Didimdol loan interest rate, available to non-homeowner household heads with an annual income of 60 million KRW (70 million KRW for first-time buyers and newlyweds) or less when purchasing a house priced at 500 million KRW or less, will be reduced by an average of 0.2 percentage points, allowing use at an annual rate of 1.85?2.40% (exclusive of preferential rates). The loan limit is 200 million KRW.

The actual loan interest rate will be even lower when preferential rates are applied to first-time buyers and multi-child families.

The newlywed Didimdol loan, available to newlywed couples with an annual income of 70 million KRW or less purchasing a house priced at 500 million KRW or less for the first time, will have its interest rate reduced by an average of 0.2 percentage points, allowing use at an annual rate of 1.55?2.10% (exclusive of preferential rates). It is expected to reduce the annual interest burden by approximately 360,000 KRW.

This interest rate reduction will apply to new loans executed from the 30th onward, and about 85,000 people are expected to benefit.

The Ministry of Land, Infrastructure and Transport decided to lower the rates considering the Bank of Korea’s base rate hike and the need to support low-income non-homeowners whose livelihoods have become difficult due to COVID-19.

The government also lowered the interest rates on Didimdol and Buteemok loans, as well as Buteemok jeonse and monthly rent loans, in May and August.

For more details, visit the Housing and Urban Fund website, and applications can be made through the Fund e-Dundeun website or entrusted banks (Woori, Kookmin, Industrial, Nonghyup, and Shinhan Banks).