- Up to KRW 4 million of tax saving for multi-family home buyers


□ Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) stated on the 27th that it will expand the

    coverage of its Mortgage Credit Guarantee (MCG)* to its securitized Didimdol Loan for Home Buyers from 

    April 28, 2016.

 * The HF Mortgage Credit Guarantee (MCG) allows home buyers to borrow up to the Loan-to-Value of their

   mortgage with no deduction of preferential payments for tenants.

□ Those looking to take out a Didimdol Loan on their home valued at KRW 300 million or less (net area of 85

    ㎡ or less) may apply for the HF Mortgage Credit Guarantee. They can visit the HF webpage and submit

    their credit guarantee application together with a Didimdol Loan application. HF charges a guarantee fee of

    0.1% of the loan amount for apartment mortgages and 0.2% for other residential mortgages.

□ Existing Didimdol Loans have not provided the credit guarantee, leaving borrowers on their own to seek

    another source of financing (to cover preferential payments for tenants deducted from the assessed

    mortgage value) or get a loan at a higher interest rate than that of HF mortgage loans. With the expansion

    of the Mortgage Credit Guarantee, new Didimdol users can get a home loan at the same interest rate as

    Didimdol Loans for Home Buyers.

□ An HF official said of this expansion of the mortgage guarantee, “Those who purchase a multi-family home 

    using our Didimdol Loans (KRW 140 million in loan amount, 10-year term) will be able to save up to KRW 4

    million in interest payments. We expect that this will help ease some burden on low-income home buyers.“