Housing Finance to provide significant reductions to housing credit guarantee fees for low-income buyers and builders of eco-friendly housing
- Date 2010-04-01
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- Cuts to range between 13% and 60% depending on type of housing to which the guarantee applies
Low-income buyers, builders of eco-friendly housing, and small- and medium-sized constructors in non-metropolitan areas may benefit from significant reductions in guarantee fees when they take out a housing guarantee from the Housing Finance on or after April 5, 2010.
Housing Finance (KHFC, CEO Joo-jae Lim) announced a plan to reduce guarantee fees to relieve the burden of borrowing costs for low-income workers, builders of eco-friendly housing*, and small- and medium-sized constructors in non-metropolitan areas.
* Eco-friendly housing refers to energy-saving homes pursuant to Article 64 of the Regulations on Housing Construction Standards; all building projects of 20 or more residential units as of October 2009 are mandated, by law, to comply with eco-friendly standards.
The proposal will allow low-income workers and people with an annual income of 30 million won or less to take advantage of guarantee fee cuts by as high as 33% and as low as 25% (0.3%-0.4% → 0.2%-0.3%); the fees for builders of eco-friendly housing and small- and medium-sized constructors in non-metropolitan areas will be reduced by a maximum of 19% and a minimum of 13% (0.8% → 0.65%-0.7%).
Cuts to range between 13% and
60% depending on type of housing to which the guarantee applies
Low-income buyers, builders
of eco-friendly housing, and small- and medium-sized constructors in
non-metropolitan areas may benefit from significant reductions in guarantee
fees when they take out a housing guarantee from the Housing Finance on or
after April 5, 2010.
Housing Finance (KHFC, CEO Joo-jae Lim) announced
a
plan to reduce guarantee fees to relieve the burden of borrowing costs for
low-income workers, builders of eco-friendly housing*, and small- and
medium-sized constructors in non-metropolitan areas.
* Eco-friendly housing refers
to energy-saving homes pursuant to Article 64 of the Regulations on Housing
Construction Standards; all building projects of 20 or more residential units
as of October 2009 are mandated, by law, to comply with eco-friendly standards.
The proposal will allow
low-income workers and people with an annual income of 30 million won or less
to take advantage of guarantee fee cuts by as high as 33% and as low as 25%
(0.3%-0.4% → 0.2%-0.3%); the fees for builders of eco-friendly housing and
small- and medium-sized constructors in non-metropolitan areas will be reduced
by a maximum of 19% and a minimum of 13% (0.8% → 0.65%-0.7%).
In addition, buyers or people
renting housing built by public constructors who have signed a strategic partnership
agreement with KHFC will benefit from a reduction in guarantee fee as high as 60%
and as low as 25% (0.2%-0.5% → 0.15%-0.2%) if they take a collective KHFC
guarantee for the payment of the deposit money.
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Currently, LH is the only institution with which
KHFC has signed a strategic partnership agreement as regards guarantee fee
reduction as of March 18, 2010. KHFC plans to gradually sign more strategic
partnership agreements with other institutions.
According to KHFC, the
guarantee fee reductions are expected to result in a savings of 4.7 billion
won, including 3.7 billion won in savings for 176,000 households using the
guarantee on rental deposit money from KHFC.