South Korea restores original mortgage terms for New Home subscribers

The South Korean Ministry of Land, Infrastructure and Transport has decided to restore the original mortgage conditions for ‘New Home’ public housing pre-subscribers. This decision follows significant backlash from applicants who faced uncertainty after recent shifts in loan regulations.

Under the restored terms, the dedicated mortgage for all units that have completed resident recruitment will offer a maximum maturity of 40 years with fixed interest rates ranging from 1.9% to 3.0%. Additionally, optional Jeonse (lump-sum deposit) loans will feature fixed rates between 1.7% and 2.6%.

During a meeting with subscribers on August 25, Minister Kim Yun-deok expressed empathy for the concerns of those who had been waiting for housing, stating that the government aims to protect citizens who applied based on the original policy promises.