New Home-exclusive mortgage finalized at up to 40 years, fixed rates of 1.9% to 3.0%

[Financial News] The New Home-exclusive mortgage has been finalized with a maximum loan term of 40 years and fixed interest rates of 1.9% to 3.0%. The plan follows the same conditions that were presented as examples when the policy was announced in 2022.
On the 25th, Minister Kim Yun-duk held a meeting with nine representatives of New Home applicants and listened to their views on the terms of the dedicated mortgage. The applicants had repeatedly called for the loan maturity and interest rates announced in 2022 to be applied as originally presented.
According to MOLIT, the standard will be applied to all New Home households that have completed recruitment of residents so far. A fixed rate of 1.7% to 2.6% will apply to selective jeonse loans.
Loan maturity and fixed interest rates are key factors that affect monthly repayments and self-financing plans. The decision is expected to help applicants estimate the funds they will need ahead of moving in.
Kim said, "I fully understand that those who have waited a long time to apply would have felt considerable concern and frustration over the loan terms," adding, "I hope this implementation plan will be a source of strength for applicants, and I will continue to manage policy matters carefully."
[email protected] Jang In-seo Reporter