Jeonse Loan Guarantees Expanded for Newlywed Couples

HF signs MOU with Seoul Metropolitan Government, KB Kookmin Bank, Shinhan, and KEB Hana Bank

Newlywed couples are going to have an easier access to jeonse loan guarantees at lower financing costs.

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) said on the 17th that it reached a memorandum of understanding (MOU) with Seoul Metropolitan Government (Major Park Won-Soon), KB Kookmin Bank (CEO Hur Yin), Shinhan Bank (CEO Jin Ok-Dong), and KEB Hana Bank (CEO Ji Sung-Kyoo). Entitled “MOU on Financial Support for the Housing Stability of Newlywed Couples”, the MOU aims to ease access to jeonse loan guarantees for newly-married couples.

Under the MOU, HF will guarantee 90% of jeonse loans at the lowest guarantee fee rate of 0.05%. Seoul Metropolitan Government will pay up to 3.0% points of the interest on jeonse loans taken out by newlywed couples for a maximum period of 10 years.

This financial assistance is available to newlywed couples* living in Seoul and with an annual combined income of KRW97 million or less. 

   * Within the first seven years of marriage reporting or to be married in six months from the date of a recommendation letter  

HF CEO Lee Jung-Hwan said, “Since we signed an MOU with Seoul Metropolitan Government and KB kookmin Bank last year, we have been working to ensure greater housing stability for newlywed couples in Seoul. We hope this MOU will provide more young married couple with an easier and less burdensome home financing solution.”