8 out of 10 People Plan to Use Special BoGeumJari Loan... Housing Prices Are Under 500 Million Won

Zigbang Survey Results
87.7% "Plan to Use"
Special Booming Housing Loan Available for Homes Under 900 Million KRW Regardless of Income
Loans Up to 500 Million KRW Possible

A survey revealed that 8 out of 10 people plan to use or are interested in the Special Bogeumjari Loan. Among respondents who said they plan to use it, the most common purpose was home purchase, with the highest response rate for homes priced under 500 million KRW.

Zigbang announced on the 13th that, according to a survey conducted from the 14th to the 28th of last month targeting users of its application (app), 87.7% of the total 1,812 respondents answered "yes" when asked if they plan to use or are interested in the Special Bogeumjari Loan. The Special Bogeumjari Loan is a product created by the Korea Housing Finance Corporation (HF) through policy mortgage loans such as the existing Bogeumjari Loan, Safe Conversion Loan, and Qualified Loan, and is operated temporarily for one year. Regardless of income, loans of up to 500 million KRW can be obtained for homes priced under 900 million KRW.

Among respondents who said they plan to use the Special Bogeumjari Loan, the intention to apply was highest among those in their 50s at 93.0%, followed by 89.2% in their 40s and 88.0% for those aged 60 and above. Respondents in their 20s and 30s also showed over 80% interest, but relatively lower compared to other age groups.

By residential area, the highest interest was among residents in provincial areas at 91.5%, with Incheon (89.4%) and the five major provincial metropolitan cities (Jibang 5dae Gwangyeoksi) at 89.5% also showing nearly 90%. Residents of Seoul and Gyeonggi showed relatively lower rates at 83.7% and 87.6%, respectively, compared to Incheon, the five major provincial metropolitan cities, and provincial residents. Since the home price is limited to under 900 million KRW, it is analyzed that the higher intention to use among non-metropolitan residents is due to the relatively larger number of homes priced under 900 million KRW compared to the high-priced metropolitan area.

The most common purpose for using the Special Bogeumjari Loan was home purchase at 84.5%. This was followed by △repayment of existing mortgage loans (9.6%) and △return of rental deposit (5.9%). Across all age groups, 'home purchase' was the most common purpose, with over 90% of respondents in their 20s and 30s planning to use it for home purchase, a relatively higher rate compared to other age groups (70-80%). The response rate for 'repayment of existing mortgage loans' was over 10% among those in their 40s and 50s, higher than other age groups.

Regarding the collateral home price considered when using the Special Bogeumjari Loan, 82.9% chose 500 million KRW or less. △Between 500 million and 700 million KRW was 11.6%, and △between 700 million and 900 million KRW was 5.5%.

Among respondents who said they do not plan to use the Special Bogeumjari Loan, the most common reason was "interest rates seem high" at 55.2%. This was followed by △other loans being more advantageous (13.5%), △not meeting eligibility criteria such as income or home ownership (11.2%), and △no plans for home purchase, loan repayment, or rental deposit return (9.0%).

Meanwhile, according to HF, within one month of the Special Bogeumjari Loan's launch, there were 77,000 applicants and the application amount exceeded 17 trillion KRW. This corresponds to 44.2% of the one-year supply target, confirming high interest in the Special Bogeumjari Loan.

However, as the trend of interest rate hikes has slowed, advice has emerged to carefully evaluate the merits of the Special Bogeumjari Loan and utilize it accordingly. Ham Young-jin, head of Zigbang Big Data Lab, said, "While the loan has the advantage of no income restrictions and fixed interest rates, the recent weakness in the housing market has reduced buying demand, and the trend of interest rate hikes has slowed, so the expected merits of the Special Bogeumjari Loan may not be as significant as initially anticipated. Demanders considering the Special Bogeumjari Loan should prepare appropriate strategies based on the loan purpose, future real estate market changes, and interest rate policy directions."