Support for Monthly Rent Deposit Loans as Well as Jeonse
Recruiting 140 Eligible Applicants Starting from the 2nd of Next Month
Incheon City is expanding support for loan interest on rental deposit loans to reduce the housing cost burden for young people without homes.
The city announced on the 29th that while it supported a 2% annual interest rate on jeonse deposit loans since last year, this year it will support interest on jeonse and monthly rent deposit loans up to a maximum of 3.5% per year.
The support targets 140 young household heads aged 19 to 39 who are registered residents of Incheon or are scheduled to move in, and who do not own a home. Their individual annual income must be 60 million KRW or less, or combined annual income for couples must be 80 million KRW or less. Additionally, the rental contract must be for a house or officetel with a rental deposit of 250 million KRW or less and an area of 85㎡ or less.
Selected applicants can receive loan interest support for up to 100 million KRW for a maximum of 4 years, with differentiated support rates of 3.5% per year for households with one or more children and 3% per year for other households. Borrowers only need to pay the remaining interest to the bank after the city’s support interest is deducted.
Interest Support for Deposit on Rental Housing for Homeless Youth in Incheon City [Provided by Incheon City]
Notably, until last year, only jeonse deposits were supported, but from this year, monthly rent (excluding unsecured monthly rent, with a jeonse-to-monthly rent conversion rate of 6.5% or less) deposit loans are also supported, broadening the range of rental housing options.
However, recipients of housing benefits or users of Housing and Urban Fund loan products are excluded to prevent duplicate support, and applications are not accepted if the rental contract is made with parents.
Youth who wish to receive interest support can apply online through the Incheon Youth Portal starting from the 2nd of next month. After qualification verification and selection, they must sign the housing lease contract and take out the loan within 3 months, and complete the move-in registration within 1 month from the loan date.
An official from Incheon City said, "Due to ongoing high interest rates and rising prices, the economic difficulties of young people are increasing, so we are expanding loan interest support from this year," adding, "Since the loan limit may vary during the review process, please check with the NH Nonghyup Bank Incheon branch before signing the rental contract."
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