Kakao Bank Launches Mortgage Refinancing Service with "Minimum 3% Interest Rate"

100% Waiver of Prepayment Penalty Fee

KakaoBank announced on the 9th that it will launch the 'Mortgage Loan Refinancing' service in line with the implementation of the mortgage loan refinancing infrastructure service.

This service allows customers who have mortgage loans from other financial institutions to switch to KakaoBank mortgage loans with better terms. The company explained that it has transferred the competitive interest rates, which were the biggest advantage of its existing mortgage loans, and the convenience based on the 'chatbot' to the mortgage loan refinancing service as well.

Through this service, KakaoBank has prepared interest rate discount benefits for customers refinancing their mortgage loans. Customers using this service can switch at an interest rate as low as the mid-3% range per annum. For mixed interest rates, both the upper and lower limits are in the mid-3% range per annum.

KakaoBank stated that it can offer low loan interest rates based on relatively low funding costs compared to other banks. In fact, according to the third-quarter performance data from last year, the proportion of low-cost deposits was about 56.9%, which is higher than the overall banking sector average of 38.3%, enabling lower funding costs.

They also mentioned that customers can easily check loan conditions through a chatbot configured with a conversational interface. The KakaoBank application (app) allows users to view their existing loan balance and interest rate along with refinancing conditions at a glance. For example, when switching to a KakaoBank mortgage loan, customers can check the expected loan limit, interest rate, and whether interest rate discount benefits apply. The expected monthly repayment amount is also provided. The chatbot can be used for procedures such as submitting documents remotely. When refinancing from KakaoBank to another bank, the prepayment penalty is fully waived, just as with existing mortgage loans.

A KakaoBank representative said, "We have prepared a new service to align with the purpose of launching the refinancing infrastructure, which is to reduce the interest burden and enhance the convenience for financial consumers," adding, "Since customers have shown great interest in mortgage loans, we will respond with more convenient and economical products."