Pre-payments OK: LTV and Mortgage Capped at ₩600M…Gap Investment and Multi-homeowners Totally Blocked

Pre-payments OK: Key Components of the June 27 Measures

Pre-payments OK: On June 27, the government capped mortgage loans in the Seoul area and other regulated zones at ₩600 million, while prohibiting mortgages for multi-homeowners. Single-home owners must sell their former property within six months of loan execution and establish residency. 강남 빌딩 매매 Although mid‐payment loans for new units are exempt, the same cap and conditions apply to final‐payment loans, move‐out loans, and court auction financing. Transitional rules exempt contracts signed before June 27, yet widespread implementation has caused market confusion.

Jeonse Loan Rules to Block Gap Investments

The June 27 measures effectively block ‘gap investments’ under the guise of tenant protection. Jeonse (deposit) loans conditional on ownership transfer are banned: if ownership changes on the lease date, no loan is granted. In Seoul and regulated areas, deposit‐return loans are capped at ₩100 million, and multi‐homeowners are barred from obtaining any Jeonse loans. Although contracts prior to June 27 may qualify for exemptions, meeting only one condition is insufficient, causing hardship even for genuine tenants.

Reducing LTV and Policy Lending Across the Board

The measures cut the Loan-to-Value (LTV) ratio for first‐time buyers from 80% to 70% in regulated zones, and trimmed policy mortgages (Didimdol, Buteemok) by ₩40–100 million. Loan terms in the Seoul area were shortened from 40 to 30 years. Stabilization loans against housing were capped at ₩100 million, while unsecured credit limits were confined to annual income, covering overdrafts and card loans. These steps aim to curb “all-in loans” and restrain household debt growth. seoul apartment