HF Raises the Jeonse Deposit Limit for Its Jeonse Guarantee Products

- Seoul and metropolitan areas: KRW500M → KRW700M, Local Areas:  KRW300M → KRW500M

- Related revision to be completed within 2021, and takes effect for applications made from Jan 3, 2022.

Korea Housing Finance Corporation(HF, CEO Choi Joon Woo) has decided to ease the eligibility criteria for Jeonse guarantee, reflecting the recent developments in the housing market. 

HF announced on Dec 27 that in order to relieve residential cost burden on the low-to-moderate income households and end users, it will lift up the Jeonse deposit cap for Jeonse Guarantee, from KRW500M to KRW700M in Seoul and metropolitan areas and from KRW300M  to KRW500M in local areas.

The revised deposit limit takes effect for the applications made from Jan 3, 2022, not only for new tenants entering into new Jeonse contracts but also for existing customers or customers of other Jeonse guarantee institutions who renew their Jeonse contracts on Jan 3 or afterward. To be noted, the maximum guarantee limit for Jeonse loans stays the same, with KRW200M.  

Jeonse Guarantees are supplied in the form of entrusted guarantees via commercial banks, an arrangement to allow customers to choose a guarantee product which best meets their needs when taking out Jeonse loans. As such, more information including interest rates and guarantee premiums are available at the Jeonse loan counters of the commercial banks. 

HF CEO Choi said, “We hope that by lowering the threshold for those who previously could not access to the public guarantee, the measure will be of help for many low-to-moderate income earners faced with difficulties due to the recent rise of loan interest rates. Going forward, HF will continue to take residential stability of low-to-moderate income households with non-homeownership at the heart of our product development and program revisions.