Homebuyers at Magok District 17 will be able to move in and transfer ownership without having to make the final payment. Those who have already moved in and paid the defense fee of 55 million won will receive a refund of that amount.
The Seoul Housing and Communities Corporation (SH) announced on August 31 that, at the request of the Seoul city government, it has established special agreement procedures to reduce delays in moving in and financial burdens for homebuyers, which will take effect on September 1.
This measure follows the Ministry of Land, Infrastructure and Transport's announcement on August 25 regarding the 'New Home Exclusive Mortgage Application Plan.' SH realized during discussions with the Housing and Urban Guarantee Corporation (HUG) that it could take more than a month to execute loans due to the exemption from the defense fee. Considering that homebuyers at Magok District 17, who began moving in on August 28, might not be able to secure the final payment within the moving period, SH devised this solution.
Magok District 17 is a land lease housing project that conducted pre-applications in September 2023, followed by a public announcement for the main application in February this year, with move-ins starting in August. During the main application process, changes in housing mortgage policies reduced the loan-to-value (LTV) ratio from 80% at the time of pre-application to 60%, and the so-called 'defense fee' of 55 million won was deducted from the total loan amount, causing difficulties for homebuyers in securing the final payment.
SH has been seeking solutions by proposing improvements to the housing mortgage policy to the Ministry of Land and holding joint meetings with the city of Seoul. Homebuyers had requested a deferral of the final payment equivalent to the defense fee, but it was determined that it would be difficult to continue deferring payments indefinitely without a confirmed loan standard.
After the Ministry of Land finalized the exemption from the defense fee on August 25, SH coordinated with relevant agencies, including the city of Seoul and Gangseo District Office, to establish procedures allowing for moving in and ownership transfer before the final payment is made.
The new procedures will take effect on September 1. Notably, homebuyers who paid the defense fee of 55 million won out of pocket between August 28 and 31 can receive a refund if they enter into the special agreement. To eliminate disadvantages among homebuyers based on the timing of the special agreement, SH included those who had already made payments in the refund eligibility.
Homebuyers wishing to utilize the 'stepping stone' loan with the defense fee exemption must visit SH's headquarters to enter into individual special agreements between September 1 and 18. Those moving in between August 28 and September 4 can also enter into special agreements at the Magok District 17 Move-In Support Center.
SH President Hwang Sang-ha stated, “We have prepared follow-up procedures with relevant agencies to ensure that the Ministry of Land's 'New Home Exclusive Mortgage Application Plan' is smoothly reflected on-site. We will continue to provide guidance and support to ensure that homebuyers at Magok District 17 can move in without any issues due to changes in loan policies.”
Meanwhile, Bang Seung-hyun, vice-chairman of the New Home Sharing Land Lease Emergency Response Committee, expressed relief that “families, parents, and friends are all happy that the issues have been resolved and we can move in safely,” adding that there is a celebratory atmosphere among those preparing to move in.
* This article has been translated by AI.
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