“From apartments to row houses and multi-family homes”: Toss Bank enters the mortgage market

[Financial News] Toss Bank is entering the mortgage lending market five years after its launch. It will offer loans for row houses and multi-family homes as well as apartments, supporting a range of financing needs, including home purchases, refinancing, household stability funds, and the return of jeonse deposits. It has enhanced customer convenience by providing real-time updates on the process from application to disbursement. 
According to financial industry sources on the 27th, Toss Bank launched a mortgage loan product that day that significantly broadens eligibility to include row houses and multi-family homes as well as apartments. 
It will also offer online “home-purchase loans conditional on repayment” for customers borrowing to buy a new home on the condition that they repay an existing jeonse loan or mortgage. The loans are available to people without a home who are moving from jeonse to homeownership, as well as owners of one home moving to a new residence.
As of today, the annual interest rate starts at 4.44%, and the maximum loan amount is 1 billion won. However, in the capital region and regulated areas, loans are available up to 600 million won for home purchases and 100 million won for household stability funds. The maximum term is 40 years, and borrowers can choose between equal installments of principal and interest or equal installments of principal.
Toss Bank has also introduced an “Easy-to-Understand Progress” feature so customers can track their loan applications. It provides real-time updates at each stage, from application and review to signing the agreement and disbursement on the closing date. It also provides guidance on essential checks for the closing date and automatically assigns a licensed judicial scrivener.
The document submission process has also been simplified. With customers’ consent, documents from public agencies are retrieved automatically, while essential documents such as purchase contracts can be submitted by taking photos.
The bank is also operating a dedicated AI chatbot specializing in mortgage loans. It provides interactive guidance on financial terms, loan conditions, and document preparation, and is available 24 hours a day, including at night and on weekends.
Toss Bank plans to expand its housing finance product lineup by introducing policy mortgage products such as the Bogeumjari Loan. To prevent delays in loan reviews, it plans to adjust the number of applications accepted each day according to incoming application volumes.
A Toss Bank representative said, “The focus of this new product was to make the complicated loan process easy and simple to navigate on mobile, while also embracing a broad range of customers, including owners of row houses and multi-family homes, who could easily be left out of non-face-to-face procedures,” and added, “Going forward, we will continue to expand our housing finance product lineup, including policy mortgage loans, and fulfill our role as a reliable housing ladder that helps customers secure and keep their own homes.” 
Toss Bank plans to flexibly manage the number of applications accepted each day according to incoming application volumes to prevent delays in loan reviews and maintain a stable lending environment. 
Meanwhile, as of the first half of this year, Toss Bank had 15.6373 trillion won in outstanding loans, up 3.3% year on year. The launch of this mortgage product is expected to diversify its loan portfolio and broaden the foundation for growth in lending. 
[email protected] Lee Hyun-jung Reporter