Principal Repayment Deferment and Full Waiver of Early Repayment Fees for Bogeumjari Loan and Conforming Loan
Additional Principal Reduction for Debtors of Written-off Claims in Housing Guarantee Debt Adjustment
Korea Housing Finance Corporation (President Kim Kyunghwan) has established support measures for customers affected by the large-scale wildfire that occurred in March, specifically for those using the corporation's products such as Bogeumjari Loan, Housing Pension, and Housing Guarantee.
The designated special disaster areas include Andong, Cheongsong, Yeongyang, Yeongdeok, and Uiseong in North Gyeongsang Province; Sancheong and Hadong in South Gyeongsang Province; and Ulju in Ulsan.
First, principal repayment deferment and full exemption of early repayment fees will be provided for customers using Bogeumjari Loan and Conforming Loan products.
If the residence of the customer or their family using Bogeumjari Loan or Conforming Loan in a special disaster area was damaged by the wildfire, they can apply for principal repayment deferment within one year from the date of the damage. For the following three years, only interest payments are required, with no principal repayment.
Wildfire-affected areas outside the special disaster zones (such as Gimhae in South Gyeongsang Province, Okcheon in North Chungcheong Province, etc.) are also eligible for principal repayment deferment for one year.
Additionally, if the customer's residence or other assets (such as farmland) were damaged by the wildfire, the early repayment fee will be waived.
Applications for principal repayment deferment can be made by visiting the relevant branch or through the corporation's website/app (Smart Housing Finance). Applications for early repayment fee exemption can only be made in person at the branch. For Conforming Loans, applications should be submitted to the lending bank.
For existing Jeonse Guarantee customers who have suffered wildfire damage and require a new rental, additional guarantees will be allowed. For new Jeonse Guarantee customers, credit evaluation and repayment ability assessments will be omitted. For homeowners whose property was destroyed or damaged, the guarantee fee for construction, renovation, or purchase funds will be reduced by 0.1 percentage points.
Housing Pension customers will continue to receive monthly payments even if their registered property is destroyed.
If the property registered for Housing Pension is destroyed or damaged by wildfire and becomes uninhabitable, monthly pension payments will be provided temporarily for up to one year. If the Housing Pension is canceled, a portion of the initial guarantee fee will be refunded based on the period of use.
The principal of delinquent debtors under housing guarantee products will be reduced by up to an additional 10 percentage points.
For customers who have defaulted on loans under the corporation's housing guarantee products, such as Jeonse Guarantee, and whose debts were repaid by the corporation due to wildfire damage, the principal reduction rate during debt adjustment of written-off claims will be increased by up to 10 percentage points (up to a maximum reduction rate of 70%). Additionally, debtors residing in special disaster areas who are already repaying in installments may defer repayment for up to two years.
To receive this support, a damage confirmation certificate issued by the local government is required. The corporation operates a dedicated consultation desk for wildfire-affected customers at its call center.
To support the prompt recovery of affected areas and help disaster victims return to daily life following the large-scale wildfire in March, the corporation donated 50 million won in relief funds.
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