KHFC Extends the Deadline for Selling a First House from Two Years to Three Years

for Bogeumjari Loan Borrowers who Own Two Houses Temporarily

- Exempted from additional interest if the first house is disposed of within three years from taking out the loan -

The Korea Housing Finance Corporation (KHFC, CEO Seo Jong-dae) announced on September 4 that Bogeumjari loan borrowers who own two houses temporarily may sell the first house within three years instead of two years beginning September 3. Previously, when borrowers had to sell their old houses they currently live in and move to newly bought houses, they had to sell the old houses within two years or pay interest at higher rates. However, with the extension, the regular rate will be applied instead of the higher rate as long as the first house is sold within three years.

In line with enforcement date of the revised Income Tax Act, KHFC will also apply the extension retroactively to customers whose deadline for disposing of the first house had arrived as of June 29. The difference between the higher rate of interest charged and the regular rate will either be exempted or refunded.

The recent measure is intended to ease the difficulties on customers who were required to pay extra interest because they could not sell their old houses in this sluggish real estate market and amid the falling house prices. It is a follow-up measure to the government plans announced on May 10 to normalize transactions in the housing market and support stable housing for the low-income and middle-class households.