Am I eligible to join? Fixed interest rate of 4% coming out this month

The ‘Bogeumjari Special Loan’, a policy mortgage without income requirements, is expected to be released at the end of this month. It is a product that integrates the advantages of complex divided policy mortgages, such as the secured conversion loan, the home loan, and the conforming loan. It is temporarily implemented for one year this year, and even those with an annual salary of 100 million can receive a fixed rate loan of 4% up to 500 million earned if the price of a house is below the 900 million was won.

According to the financial sector on the 9th, the features of the special Bogeumjari Loan to be released at the end of this month greatly eased the threshold for loans. Above all, removing the income requirement is unconventional. Existing Bogeumjari loans were only available up to 70 million won in combined annual income for couples, so takers were limited.

In addition, the upper limit on house prices was expanded from 600 million won to 900 million won, and the loan limit was increased from 360 million to 500 million won.

A Special Bogeumjari Loan can be used for new purchases, replacement loans to replace existing loans, and loans to return rental deposits.

When the argument was raised about the fairness of policy product interest rates being provided in favor of existing borrowers, the same interest rate was applied regardless of the purpose of the loan.

In addition, it is advantageous to increase the loan limit as the total debt repayment ratio (DSR) regulation is not applied.

Currently, a DSR regulation of 40% applies to borrowers exceeding KRW 100 million, but this restriction does not apply to Bogeumjari special loans.

As with the existing Bogeumjari Loan, the mortgage loan ratio (LTV) and total debt service ratio (DTI) are expected to be applied at 70% and 60%, respectively.

Regarding the interest rate, which is the most important factor, it intends to provide an interest rate that is approximately 1.7 to 2 percentage points lower than the current appropriate rate of 6%. As a result, it is expected that the special bogeumjari loan will be determined at an annual rate of 4%. As the top end of Woori Bank’s floating interest rate has recently surpassed the 8% level, end users are interested in it.

An official from the financial authorities said, “Detailed work such as the computer integration of the special Bogeumjari Loan is underway after discussions with the banking sector,” and “we will make it available at the end of this month.”