Chungnam Supports Youth Housing Lease Deposit Interest 'Up to 3.5%'

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province is launching an interest support program for young people's housing rental deposit.

The province announced on the 25th that it will start accepting applications for the young housing rental deposit interest support project from the 1st of next month.

Through this project, the province will support interest on housing rental deposits up to a maximum of 3.5%. Eligible applicants are young people aged 19 to 39 with a registered address in Chungnam (including those planning to reside).

In particular, from this year, the province has significantly revised income conditions to alleviate housing burdens for economically vulnerable youth.

The income condition revision unifies the eligibility to those with '120% or less of the standard median income' and establishes additional interest support for other housing residents and low-income youth.

Also, unlike last year when there were no occupational restrictions, this year public sector workers are excluded from the program considering job stability and other factors.

The housing conditions eligible for interest support are housing or residential officetels with rental deposits of 150 million KRW or less. The loan limit is 70 million KRW (within 90% of the rental deposit), and the support period is two years.

The loan interest rates are NH Nonghyup Bank’s 2-year fixed rate at 5.5%, and Hana Bank’s 6-month variable rate based on the new balance COFIX (6 months) + 2.6%. The province supports 50% of the selected interest rate (up to 3%).

Additionally, other housing residents receive an extra 0.2%, youth with 100% or less of the standard median income receive 0.1%, those with 80% or less receive 0.2%, and those with 60% or less receive 0.3% additional interest support.

The province explains that through this project, local youth will be able to obtain rental deposit loans for jeonse or monthly rent at interest rates in the 2% range, thereby relatively reducing their housing cost burden.

Applications can be made online via the Government24 website (search for Subsidy24, Young Housing Rental Deposit Interest Support).

The province will select eligible applicants through the first document screening, and each selected applicant can receive rental deposit loan execution and interest support through loan screening at the bank they choose.

Jo Won-tae, the province’s Youth Policy Officer, said, “The young housing rental deposit interest support project has been evaluated as greatly contributing to alleviating young people’s housing cost burdens over the past four years. Especially this year, we restructured the project focusing on vulnerable youth to realize policies that young people can truly feel.”