[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] The application and reception for the preferential-type Anshim Conversion Loan closed with a total of 9.4787 trillion KRW recorded, marking 37.9% of the supply scale.
Korea Housing Finance Corporation (HF Corporation) announced on the 3rd that the application and reception for the Anshim Conversion Loan closed with a total of 74,931 cases and 9.4787 trillion KRW recorded.
In the first phase of applications conducted from September 15 to the end of October last year, a total of 39,026 cases amounting to 3.9897 trillion KRW were received, and in the second phase conducted from November 7 to the end of December, a total of 35,905 cases amounting to 5.489 trillion KRW were received.
The preferential-type Anshim Conversion Loan is a product that refinances variable-rate or quasi-fixed-rate mortgage loans secured by houses priced at 600 million KRW or less in the first and second financial sectors into HF Corporation’s long-term, fixed-rate policy mortgage loans with interest rates in the 3% range.
In the first phase of Anshim Conversion Loan applications, the housing price ceiling was 400 million KRW, but due to too few applicants compared to the supply amount, the housing price ceiling was raised to 600 million KRW in the second phase.
The loan eligibility criteria were also adjusted from single homeowners with an individual or combined spousal annual income of 70 million KRW or less to single homeowners with an annual income of 100 million KRW or less, and the loan limit was raised from 250 million KRW to 360 million KRW.
According to HF Corporation’s analysis, the average housing price of Anshim Conversion Loan applicants was 310 million KRW, with 62.6% of applicants having housing priced at 400 million KRW or less.
The average applicant income was 45 million KRW, with 81.3% earning 70 million KRW or less. By region, Gyeonggi accounted for the largest share at 34.8%, followed by Incheon at 9.1%, and Seoul and Busan each at 7.6%.
The average age of applicants was about 48 years old, with those in their 40s making up the largest group at 31.8%, followed by those in their 30s at 25.3%, 50s at 24.3%, 60s and older at 13.7%, and 20s at 4.9%.
The average refinancing application amount for the Anshim Conversion Loan was approximately 127 million KRW, with 85.2% of the total application amount being 250 million KRW or less.
Regarding housing types, apartments accounted for 75.9%, multi-family houses 12.5%, detached houses 7.8%, and row houses 3.8%.
As of the end of December last year, HF Corporation completed loan conversions totaling 6.3 trillion KRW from the received Anshim Conversion Loan applications, and plans to complete the remaining loan executions by the end of February.
Mortgage-backed securities (MBS) based on the Anshim Conversion Loan are scheduled to be issued sequentially during the first half of the year.
An HF Corporation official stated, “We plan to minimize the impact on the domestic bond market through mandatory MBS purchases by banks and the expansion of overseas covered bond issuance.”
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