Safe Conversion Loan Reaches 27,101 Cases on Day 13 ... Application Volume 2.5309 Trillion Won

Korea Housing Finance Corporation logo.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] As of the 13th day since the application opened, on the 6th, a total of 27,101 applications for the preferential-type Anshim Conversion Loan have been received, amounting to approximately 2.5309 trillion KRW.

Applications through the Korea Housing Finance Corporation website and the Smart Housing Finance app totaled 14,411, with an application amount of about 1.3894 trillion KRW. Applications received at the branches of Kookmin, KEB Hana, NongHyup, Shinhan, Woori, and Hana banks totaled 12,690, with an application amount of about 1.1415 trillion KRW.

The cumulative application amount is approximately 2.5309 trillion KRW, which is about 10.12% of the Anshim Conversion Loan supply scale of 25 trillion KRW.

The preferential-type Anshim Conversion Loan is a product that refinances variable or quasi-fixed rate mortgage loans secured by homes priced at 400 million KRW or less from first and second-tier financial institutions into long-term, fixed-rate policy mortgages.

The loan target is a single homeowner with an annual income of 70 million KRW or less, or a married couple with combined income of 70 million KRW or less, owning one home priced at 400 million KRW or less.

Eligible applicants can convert up to 250 million KRW of their existing mortgage loans into fixed-rate products without prepayment penalties.

The preferential-type Anshim Conversion Loan interest rates range from 3.80% to 4.00% annually depending on the 10 to 30-year maturity, and low-income youth aged 39 or younger with income below 60 million KRW can receive rates from 3.70% to 3.90% annually.

The preferential-type Anshim Conversion Loan is being smoothly processed by applying a phased application reception based on housing prices and a day-of-week system according to the last digit of the birth year.

Applications can be submitted online via the Korea Housing Finance Corporation website or the Smart Housing Finance app, and offline applications are also accepted at the branches of Kookmin, KEB Hana, NongHyup, Shinhan, Woori, and Hana banks. The application period for homes priced at 400 million KRW or less is from October 6 to 13.

An HF Corporation official stated, “Since variable-rate mortgage loans generally reflect COFIX rate changes every six months, it is necessary to consider the loan interest rate that will apply on the next rate adjustment date rather than the current loan interest rate when considering using the Anshim Conversion Loan.”