The Korea Housing Finance Corporation has eased income criteria for newlyweds applying for housing loans, reducing the so-called 'marriage penalty.' Even if a couple's combined income exceeds the current limit, they can still apply for the loan if one spouse earns less than 70 million won annually. The interest rate for housing loans will remain unchanged at 4.90% to 5.20% for October, marking three consecutive months of stability.
The housing finance agency announced on the 28th that these new income criteria will take effect for new applications starting on October 19.
Currently, the income ceiling for newlywed couples is set at 85 million won for those without children, 90 million won for families with one child, and 100 million won for families with two or more children. Under the new guidelines, couples can apply for the housing loan even if their combined income exceeds these limits, as long as one spouse's income is below 70 million won.
Newlywed households are defined as those applying for a loan within seven years of their marriage registration date. Couples planning to marry within three months of their application date are also eligible.
This policy change aims to alleviate the 'marriage penalty,' which often excludes couples from policy loans due to increased combined income after marriage. It follows the government's comprehensive financial measures announced on August 13 to stabilize the real estate market.
Additionally, the housing finance corporation has decided to keep the interest rates for housing loans unchanged in October. The base rate for the 'Akkimee Housing Loan' will remain at 4.90% to 5.20%, with rates of 4.90% for a 10-year term, 5.10% for a 30-year term, and 5.20% for a 50-year term.
Low-income youth, newlywed households, socially vulnerable groups such as the disabled and single-parent families, and victims of rental fraud can receive an additional preferential interest rate of up to 1.0 percentage point, bringing the minimum rate down to 3.90% to 4.20%.
Kim Kyung-hwan, president of the Korea Housing Finance Corporation, stated, “We will continuously monitor and improve our policy loan support to ensure that the younger generation can secure stable housing.”
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.