Deferment of Bogeumjari Loan Principal Repayment and Additional Jeonse Guarantee for New Jeonse Guarantee Customers
Dedicated Call Center for Inquiries
Continued Monthly Payments for Housing Pension Customers if Home is Destroyed
Additional Principal Reduction for Debt Adjustment on Written-off Claims
Korea Housing Finance Corporation (President Kim Kyunghwan) has introduced support measures for customers in areas affected by the recent record-breaking torrential rains, aiming to ease their financial burden and support housing stability.
The regions prioritized as special disaster zones are Gapyeong, Seosan, Yesan, Damyang, Sancheong, and Hapcheon.
If the home of a customer or their family, who is currently using the Bogeumjari Loan or Qualified Loan in a special disaster zone, has been damaged by the torrential rains, they may apply for a principal repayment deferment within one year from the date of the damage. For the following three years, they will only be required to pay interest, with no principal repayment.
Additionally, in areas outside the special disaster zones, if the home of a customer or their family has been damaged by the torrential rains, they may defer principal repayment for one year and pay only interest during that period.
If the home of a customer or their family, or other assets such as rice fields or farmland, have been damaged by flooding, the customer will be exempted from early repayment fees when repaying their loan.
Applications for principal repayment deferment can be submitted through the Corporation's website, the Smart Housing Finance app, or at the relevant branch office. For exemption from early repayment fees, customers must visit the relevant branch office in person. However, for Qualified Loans, applications must be made at the bank where the loan was obtained.
Existing Jeonse guarantee customers who have lost their residence due to flooding and need to sign a new Jeonse contract may receive additional guarantees. For new Jeonse guarantee customers in the affected regions, credit evaluation and repayment ability assessments will be omitted. In addition, for homeowners whose homes have been damaged or destroyed, the guarantee fee for construction, improvement, or purchase funds will be reduced by 0.1 percentage points.
If a home enrolled in the Housing Pension has been destroyed or rendered uninhabitable due to flooding, monthly Housing Pension payments will continue to be provided for one year on a temporary basis. If the Housing Pension is canceled, a portion of the initial guarantee fee will be refunded, reflecting the usage period and other factors.
If a customer who was unable to repay their loan to a financial institution and had the Corporation repay it on their behalf suffers flood damage while using the Corporation’s housing guarantee products, the basic principal reduction rate during debt adjustment for written-off claims will be increased by up to 10 percentage points, allowing for a maximum principal reduction of up to 70%. In addition, for customers residing in special disaster zones who are currently repaying their debts in installments, repayment may be deferred for up to two years.
To apply for this financial support, a damage confirmation certificate issued by the local government is required. Furthermore, the Corporation will operate a dedicated consultation desk for flood-affected customers within its call center to help customers in the affected areas return to their daily lives quickly.
The Corporation also plans to donate 50 million won to the Korean Red Cross to support flood victims in their recovery efforts.
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