Korea Housing Finance Corp. (HF) has lowered application terms on “Safety Transition Loans” that can switch to housing-secured loans with a minimum annual interest rate of 3.7 percent and the cap of the loans.
On Oct. 7, the first day when the relaxed measure was taken, 1,864 applications worth a combined 320.8 billion won were tallied, HF said.
HF said that on Oct. 7, the first day of the second-phase application period, 1,864 applications worth a combined 320.8 billion won were accepted.
The figures bring to a total of 40,890 cases worth about 4,310.5 billion won in cumulative applications.
The cumulative applications break down to 20,572 applicants worth a combined 2,280.2 billion won, made via HF’s website and the smart housing financing app and 20,318 cases worth 2,030.3 billion won, done via six commercial banks’ mobile apps.
Outcomes of the first application, made between Sept. 15 and Oct. 31, showed that 39,026 applicants worth a combined 3,989.7 billion won were accepted.
The total amount accounts for about 16 percent of HF’s loan supply cap.
In order to fix the sagging application, financial authorities relaxed application terms of the safety transition loans, raising housing prices from 400 million won to 600 million won and couple’s combined income from 70 million won to 100 million won, on top of increasing the loan cap from 250 million won to 360 million won.
Interest rates of the relaxed loans range from 3.8 percent to 4 percent per annum, equal to the previous ones.
Youths employed the low-income benefit from lower interest rates, ranging from 3.7 percent to 3.9 percent.
One-unit owners of houses whose value is less than 400 million won, who have failed to submit applications, are qualified for the second phase application.
A female model promotes “Safety Transition Loans” whose application terms have been relaxed by Korea Housing Finance Corp. (HF). (Photos: HF)
HF plans to wrap up its application procedure earlier than planned if the loan amounts of applicants surpass its supply target of 25 trillion won.
But even though financial authorities have lowered application terms of the Safety Transition Loans and resumed application, demand for the loans still seem to be sagging.
Only about 1,800 applications were made on the first day of the second phase application.
Applications of the second phase application have been made for two weeks from Nov. 7, according to a five-shift regime based on birth date.
From Nov. 21 until the end of this year, applications will be accepted regardless of birth date.
Applications will be accepted from people whose birth year ends 2 and 7 on Nov. 8, from ones whose birth year ends 3 and 8 on Nov. 9, from people whose birth year ends 4 and 9 on Nov. 10, from people whose birth year ends 1 and 6 on Nov. 14, from people whose birth year ends 2 and 7 on Nov.15, from people whose birth year ends 3 and 8 on Nov.16, from people whose birth year ends 4 and 9 on Nov.17, from people whose birth year ends 5 and 0 on Nov. 18. Applications will be accepted from Nov. 21 until Dec. 30, regardless of birth year.
Acceptance centers of the Safety Transition Loans may change according to financial institutions offering the housing-secured loans.
Applicants of the loans from six commercial banks can be accepted from outlets of the related bank and its mobile app.
Applicants of loans from non-banking institutions can be accepted to HF’s website or the smart housing financial app.
HF Becomes 1st Financial Institution to Obtain Compliance Management System ‘ISO 37301’
Korea Housing Finance Corp. (HF) became the first financial institution to be certified with the international standard “ISO 37301,” a compliance management system, in recognition for its efforts to build compliance management policies and risk response regimes, HF said on Oct. 28.
In May, HF established an ethics management implementation team, headed by the HF president, to build in-house ethics and integrity awareness.