HF releases a guarantee product for residential stability of Iksan young adults

- Full guarantee coverage up to 90% of deposit within KRW 100M, with 0.05% of annual G/T rate

Korea Housing Finance Corporation (HF, CEO Choi Joon Woo) announced on April 12 the launch of a guarantee product on April 13 to support resident stability of young adults in Iksan city, Jeonbuk province, in MOU-based collaboration with Iksan city (Mayer Jeong Heon Yul), Jeonbuk Bank (President Seo Han Guk), and NH Bank(Director of Iksan Branch, Lee Jong Lim).   

With the MOUs, HF sets out to provide the Jeonse and monthly rent guarantee products in related agreements with ten metropolitans and five municipal governments and counties. The newly agreements target to support young adults aged between 19 and 39 in the city, who do no own a house* and meet eligibility criteria, including income and house eligibility.   

* Non-homeownership requirement: None of the members of a household (the householder, spouse, their parents and/or children) is a houseowner. 

The HF Guarantee covers up to 90% of the rental deposits, with the loan limit of KRW 100M, and applies the minimum guarantee fee rate (annual 0.05%). Iksan municipal government reimburses loan interest up to annual 3%p for those who meet eligibility requirements. Considering the recent Jeonse loan market rate hovers around annual 2%, the program makes the Jeonse loan practically interest-free. 

HF commented, “We have launched Jeonse and monthly rent guarantee products to alleviate housing costs burdens for young adults and newlyweds with non-homeownership since 2016. To this end, we have concluded MOUs with commercial banks and 15 metropolitan or municipal governments, including Seoul and Busan Metropolitan Governments. The guarantee supplied last year amounted about KRW 3.7 trillion(approx. 28,000 guarantees). For betterment of housing welfare of young adults and newly weds, we will continue to enhance the related guarantee products.”