How to get housing loan as a foreigner

How to get housing loan as a foreigner

전세 대출

If you are a foreigner who is going to marry Korean, this information might be very helpful for you. (I roughly translate the information on Shinhan Bank, for more detail information please visit Shinhan bank global branch-city centre branch in Seoul)

 

Shinhan Bank offers "The Dream" housing loan package which lends up to 200 million won to foregienrs who are eligible for bank guarantee when applying to the loan.

 

Visa eligibility for housing loans:

                                                         A-1~A-3, D1~D3, D5~D10, E1~E5, E-7, F-1, F-2, F-4~F-6, H-2

신한은행- 더드림 전세대출(서울보증_외국인) https://bank.shinhan.com/index.jsp#020305010000

The Dream housing loan package customers:

1) A couple who do not own any house or own a single house (the price of their own house is less than 900 million won and the acquisition time of their home in speculative or overheated speculation zones is not more than 300 million won). 

2) A tenant who has entered in to a housing lease contract through a real estate agency and paid at least 5% of the lease deposit and meet all of the following requirements.

• Over 19 yo(Korean age) foreigners or compatriots of foreign nationality who can prove their income
• The ratio of financial expenses to income (including this loan) within 40%
  * However, loans may be restricted depending on the type of VISA staying in Korea

Target House:

                              Apartment, row houses(연립주택), multi-unit houses (다세대 주택), residential officetels, and welfare housing for the elderly
*single (or multi-family) houses (다가구 주택) are excluded from the loan

 

Limit of loan:

                        Up to 200 million won (within 80% of lease deposit, covered by Seoul Guarantee Insurance)

How to calculate interest and when to pay

• Calculation method: calculated on a daily basis, considered 365 days a year
• Payment timing: interest payment is made every certain cycle (monthly etc.) by setting the interest payment date.
  *Interest can be paid through internet banking on holidays

신한은행- 더드림 전세대출(서울보증_외국인) https://bank.shinhan.com/index.jsp#020305010000

Mortgage rates:

                              Up to 1.0% preferential treatment is possible

• Shinhan Card (credit card) designated a current payment account and used more than 500,000 won for the past three months - 0.3%
  *However, check cards usage more than 500,000 won for the past three months - 0.1% (cannot be applied with credit cards)

• When trading a certain amount of salary transfer or meeting addiitonal preferential treatment for MyShop Care - 0.5%
  - If a salary transfer of no less than 500,000won is confirmed once within the last three months, or if it is deposited the sales amount by no less than 3 credit card companies (including Shinhan Card) within the last three month.
• Installment savings/subscription/pension trust account, when confirming the deposit of no less than 100,000 won per month - 0.2%  
  * The preferential interest rate based on the transaction performance is recalulated and applied monthly depending on whether the preferential conditions are fulfilled.

Delinquency rate

• Interest rates added to the originally agreed interest if the loan is not paid on the day the loan interest is to be paid or the loan is not repaid on the day the loan contract is terminated.
• The overdue interest rate is applied within up to 15% in addition to 3% of the overdue calculation rate to the loan interest rate.
  * For more information, refere to the basic terms and conditions of bank credit transactions.

Loan Period:

                       More than 3 month, less than 36 months

*However, the loan termination date and the least termination date must match under the least contract.

*When the loan expires, the loan deadline is postponed or the loan is repaid through the bank's review.

신한은행- 더드림 전세대출(서울보증_외국인) https://bank.shinhan.com/index.jsp#020305010000

Repayment method

Full term repayment or principal installment repayment

"Repayment in advance" cancellation fee  

Repayment in advance X Rate of "repayment in advance" cancellation (0.8%) X (remaining days loan / the loan period)

 

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Loan fee

- no more than 50 million won tax exemption

- if it exceeds 50 million won, differential stamp duty imposition by loan amount [50% bank and 50% customer bear (responsible)]

• Stamp duty (Stamp tax)

Loan Amount (won)	Stamp duty	Bearing stamp duty
		Customer	Bank
no more than 50 million	Tax exemption	Tax exemption	Tax exemption
more than 50 million ~ no more than 100 million	70,000 won	35,000 won	35,000 won
more than 100 millioin ~ no more than 1 billion	150,000 won	75,000 won	75,000 won

*Effective date: March 2nd, 2016

 

Required document

Original lease agreement (received the "fixed date-확정일자"), copy of landlord's bankbook, receipt of down payment,

foreign (or foreign national) registration card, passport, certificate of domestic residence report (or resident registration), employment (business management) proof, document shows proof of income etc.

 

For more information please visit https://bank.shinhan.com/index.jsp#020305010000