📅 2025-01-01
The most important housing mortgage when buying a home! Learn everything from interest rate comparison by bank to strategies for getting the lowest rate.
Housing mortgages are divided into two types. ① Home purchase loan: Loan to buy a new home. ② General housing mortgage: Loan using owned home as collateral for living expenses. Interest rates divided into variable, fixed, and mixed rates. Variable rate changes with market, fixed rate stays same until maturity, mixed rate fixed for certain period then variable.
① Use Financial Supervisory Service "Financial Products at a Glance" site: Compare all bank rates at once. ② Visit each bank website directly: Check detailed conditions. ③ Internet banks like Kakao Bank, Toss Bank: Low rates and simple procedures. ④ Commercial banks (KB, Shinhan, Hana, Woori, NH, etc): Various preferential rate conditions. ⑤ Regional banks: Preferential treatment for local residents. ⑥ Use Korea Housing Finance Corporation Bogeumjari and eligible loans.
Housing mortgage rates determined by several factors. ① Base rate: Bank's basic rate. ② Additional rate: Added based on personal credit, collateral value, LTV, DTI. ③ Preferential rate: Deducted when meeting conditions like salary transfer, automatic payment, card usage, new customer. ④ Credit score: Higher score = lower rate. ⑤ Collateral value: Lower LTV (loan-to-value) = more favorable. ⑥ Income: Higher income = lower rate.
① Manage credit score: Manage credit 6+ months before loan (no delinquency, card usage). ② Use comparison platforms: Compare multiple banks simultaneously. ③ Meet preferential rate conditions: Maximize salary transfer, card usage, savings account. ④ Lower LTV: Reduce loan amount by increasing equity ratio. ⑤ Prioritize government-supported loans: Check Bogeumjari, eligible loans (Didimdol, Butimok). ⑥ Time loan execution: Execute during rate decline period.
Variable rate: Loan rate changes with market rate. Lower initial rate. Favorable when rates fall, unfavorable when rising. Fixed rate: Rate fixed until maturity. Higher initial rate. Favorable when rates rise, enables stable repayment plan. Mixed rate: Fixed for initial period (3-5 years), then variable. Mid-level rate. Selection criteria: Decide based on rate outlook, repayment period, risk tolerance.
① Check prepayment penalty: Whether fee applies for early repayment. ② Loan limit: LTV (Loan-to-Value) max 70%, check DTI (Debt-to-Income). ③ DSR (Debt Service Ratio) regulation: Annual principal and interest payment within 40% of annual income. ④ Rate increase possibility after execution: Consider rise risk when choosing variable rate. ⑤ Insurance subscription: Fire insurance mandatory. ⑥ Tax benefits: Use housing fund deduction.
Housing mortgage can be the largest debt of your life. Even 0.1%p difference in interest rate creates millions of won in interest difference. Compare carefully, manage credit score, prioritize government-supported loans to get the lowest rate.