US central bank interest rates
As the central bank’s base interest rate rises, the main loan interest rate rises and, conversely, the limit on apartment jeonse loans is lowered.
As a result, the ‘housing market’ is freezing, and in this situation, some banks are receiving a lot of attention according to the issue of raising the limit and lowering the interest rate.
The U.S. Federal Reserve raised its June 2022 benchmark interest rate by 0.75%. The standard interest rate in Korea is 1.75%, which is a problematic situation. In Korea, it is predicted that this time it will rise by more than 0.5%, and the loan-to-deposit ratio. It is also predicted to rise significantly.
In fact, even if the ‘interest rate for main loan loans’ is lowered, it is expected to rise further in the future. 국민은행 빠른조회
Could the interest rate be lowered further?
●Temporarily possible, long-term impossible. 이베이스매뉴얼
The current interest rate in Korea is 1.75%, but in the US it is 1.75%. In fact, it will likely rise further in the future, including the call rate.
Even if each bank temporarily lifts the limit and lowers the interest rate, it is meaningless.
Weighted average interest rate by bank
Cabin recorded the lowest at 3.01% and IBK recorded the highest at 4.68%. However, not only the ‘preferential interest rate’ is different, but also the ‘additional interest rate’ is different, so you need to carefully consider it.
Woori Bank Apartment Jeonse Loan Limit
●Up to KRW 500 million is possible.
The product name is ‘Our Smart Jeonse Ron’. Employees with a tenure of 3 months or longer are provided with a period of between 1 and 2 years. Being able to do it without visiting a branch can be an advantage.
In terms of interest rates, the new amount of COFIX is 3.87% for 6 months and 4.24% for 12 months.
Considering that the central bank of Korea’s base rate has recently risen, it may rise further because it is a ‘floating’ product.
Kookmin Bank Apartment Jeonse Loan Limit
●Up to 3 years, up to 500 million.
This is a product that provides support with ‘Seoul Guarantee Insurance Guarantee Collateral’ when new occupants or contract renewals are being made. Exemptions are made in cases where the value of the house in possession exceeds KRW 900 million. However, it is possible to apply for proof of actual demand requirements.
As a condition for the subject, you must pay at least 5% of the deposit as a down payment after signing a rental contract through a brokerage.
In terms of interest rates, you can check from the low 3% low to the high 5% low. It is okay because the maximum rate of 1.2% per annum is applied as a preferential rate, but you have to be careful as the ‘base rate’ itself is constantly rising.
Prepayment fees also apply, so be careful.
Hana Bank Apartment Jeonse Loan Conditions
●Up to 500 million won is possible.
The target housing for the product name ‘Excellent Housing Jeonse Loan’ is apartments, tenements, residential officetels, and multi-family houses.
All of the conditions below must be met.
①Conclude a lease contract through an agency, pay at least 5% of the deposit
② A person who can secure the right to preferential repayment and countermeasures under the Lease Protection Act, or who can secure it within 3 business days from the date of handling
③ An adult head of household with a DTI of less than 40%
But in terms of interest rates, they boast about 5-6%, so you have to be more careful. Even with reduced interest rates, 0.1~0.9% preferential treatment is available depending on the type of transaction performance, and there are also preferential treatment for 3 children and 4 children.
Conditions for K-Bank Apartment Jeonse Loan
●Reimbursement is possible up to 1 billion won.
This is possible if you own an apartment or live in an office worker or a sole proprietor. In the case of living stabilization funds, up to KRW 100 million is possible.
It is possible if you own an apartment in the name of yourself or your spouse jointly, and it is possible if you are an employee who has worked for more than one month, or a sole proprietor who can issue a proof of income amount.
Interest rates as low as 3.56% and as high as 4.35%. Prior to June 17, 2021, a ‘preferential interest rate’ was also provided, but it was abolished.
Also, interest rates may vary depending on various products such as financial bond interlocking and hybridization.
Other supporting funds
It is a government-funded product and you can receive support for housing other than Apt. Support is provided for ‘homeless householders’ with a combined annual income of 50 million won or less and a net asset value of 325 million won or less.
120 million won in the metropolitan area, 0.8% in areas other than the metropolitan area, and the interest rate is 1.8-2.4% per annum.