KakaoBank "Extends Maximum Maturity of All Mortgage Loans to 45 Years"

Extend Both Hybrid and Variable Interest Rate Products to 45 Years

[Asia Economy Reporter Minwoo Lee] KakaoBank is extending the maximum maturity period for mortgage loan products to 45 years.

KakaoBank announced on the 10th that starting from the 17th, it will extend the maximum maturity period for all mortgage loan products, including mixed and variable interest rates, from 35 years to 45 years.

The previous maximum loan period for mortgage products was 5 years for variable interest rates and 35 years for mixed interest rates. Going forward, customers will be able to choose from 15, 25, 35, or 45 years for both variable and mixed interest rate products.

With the extended maturity period for installment repayment mortgage products, the monthly principal and interest repayment amount will decrease, and the Debt Service Ratio (DSR) will also be lowered, which is expected to have the effect of increasing the loan limit.

A KakaoBank official explained, "We extended the maximum maturity period to reduce the repayment burden on customers during the period of rising interest rates," adding, "This not only lowers the customers' principal and interest repayment burden but also has the effect of expanding the loan limit."

In the future, KakaoBank plans to expand the regions eligible for mortgage loan products. Currently, mortgage loans are only available for apartments in the Seoul metropolitan area, major metropolitan cities nationwide, and Sejong Special Self-Governing City.