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HF KOREA HOUSING FINANCE CORPORATION

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Didimdol Loan

1 Eligibility requirements Open
  • Combined annual income of loan applicant and his/her spouse must be KRW 60 million or lower. (For newlyweds, household with multiple children, first-time home buyer, the income limit is of KRW 70 million or less)
  • Korean citizen as of the date of loan application.
  • Recognized as an adult under civil law and the head of a household*. All members of the household, including the head of household should be non-homeowners. The head of a one-person household is also eligible but must be at least 30 years of age.

*Head of a household refers to the head of a household that consists of a spouse, lineal ascendants (lineal ascendants of spouse) or lineal descendants stated in the resident register OR those described below.

  • Spouse of the head of a household who has home ownership.
  • A person who is registered as a member of a household in the resident register but will become the head of a household by marriage within three months from the date of loan application.
  • The head of a one-person household less than 30 years of age and forms a single household with at least one sibling who is a minor under civil law.
  • The head of a household who is unmarried, less than 30 years of age, and forms a single household with at least one lineal ascendant. The resident register must indicate that the head of household lived together with the lineal ascendant at least six months as of the date of loan application.
2 Application period Open
  • Within three months from the date of ownership transfer registration.
3 Interest rate Open
  • Variable depending on loan maturity and borrower's income level.
  • Fixed until maturity or adjustable every five years.
  • Prime rate offered to household with three or more children (0.5%p discount) and multi-cultural family, family with a disabled member, and first-time home buyer. (0.2%p discount newlyweds) (only one discount shall apply, dual application not permitted)
4 Eligible houses Open
  • Houses registered on the official registry (real estate registry certificate) Houses priced more than KRW 500 million or houses larger than 85㎡ (houses larger than 100㎡ outside the capital region) are not eligible.
5 Loan limit Open
  • Up to 70% of the collateralized house value (no more than KRW 250 million)
6 Term of loan Open
  • 10 years, 15 years, 20 years, or 30 years
7 Repayment arrangement Open
  • Monthly equal installment repayment of principal and interest, equal installment repayment of principal (decremental repayment)
  • Up to one-year grace period (payment of interest only)
  • Prepayment penalty: applied within 3-year period from the loan origination and up to 1.2% in sliding method(prepayment penalty is decreased depending on the number of remaining days, prorated daily rate, n/365)
8 Proof of income Open
Proof of income
Type of income Proof
Earned income Certificate of income (including certificate of income for applying worker's asset building savings), withholding tax receipt for year-end tax report, certificate of income that includes salary details (statement of salary confirmed by an employer, certificate of income tax withholding)
Business income Certificate of income (including certificate of income for applying worker's asset building savings), withholding tax receipt for year-end tax report or on business income, final return of tax base and tax payment statement
Pension income Letter of confirmation of entitlement to pension benefits, etc.
Other income
recognized by HF
National pension payment certificate, national health/long-term care insurance payment certificate
9 Acceleration clause and loan collection Open
  • The borrower and his/her spouse will be checked at least once a year through the National Land Information System of the Ministry of Land, Infrastructure, and Transport to investigate whether they own two or more houses. In the event ownership of multiple homes is discovered, the acceleration clause shall apply and the loan shall be collected immediately.
  • If details regarding income stated in the loan agreement are found to be untruthful, the acceleration clause shall apply and the loan shall be collected immediately.