Photo = Yonhap News
With the release of an ultra-long-term mortgage product with a maturity of 40 years within this year, there is a debate over the loan product. Some hailed it as “a policy that helps the common people who are burdened with the house price,” while some criticized voices saying that “the government has raised all the house prices and offers long-term loan products to pay off their debts for life”.
◆Monthly payment is reduced… “Positive from a consumer standpoint”
According to the Financial Consumer Affairs Bureau’s work plan announced by the Financial Services Commission on the 14th, the Financial Services Commission is planning to first introduce a host family with a maturity of up to 40 years for young people and newlyweds.
The use class is expected to be the same as the Bogeumjari Loan. The Bogeumjari Loan can be received only if it meets the conditions of an annual income of 70 million won or less and a house price of 600 million won or less.
The advantage is that the monthly repayment amount decreases thanks to the increase in maturity than before. When a loan is received at 2.5% of an annual interest rate of 300 million won, the monthly repayment amount for 30-year maturity is 1185,000 won, and for 40-year maturity is 994,000 won.
There is also an opinion that the low-income class will benefit from an ultra-long-term charge because the monthly repayment will be small. Lee Eun-hyung, a senior researcher at the Korea Institute for Construction Policy, said, “The introduction of a 40-year mortgage loan, which is longer than before, is positive for consumers, considering inflation and the like, in a situation where house prices have risen significantly in recent years.”
Photo = Yonhap News
◆Critical view of “What is different from living monthly rent?”
On the other hand, there is also a skeptical view of’is it to pay only debts until death? The government is not catching rising house prices, but eventually increasing the interest burden of the common people. The total interest paid when borrowing with a 30-year maturity on 2.5% of an open interest of 300 million won is 126.73 million won, but at 40-year maturity, it increases 37.9% to 174.88 million won.
There are criticisms that the loan target is also unrealistic.
According to KB Real Estate on the 15th, the median price of apartments in Seoul in January was 962.59 million won. It is pointed out how many young people and newlyweds will be eligible for a house price of 600 million won or less and an annual income of 70 million won or less in a situation where half of them are over 900 million won. This is the reason why some are questioning whether it is a’policy to write sensations for election’.
Professor Kwon Dae-jung of Myongji University (Department of Real Estate) said, “If you buy a loan for 40 years in your 30s and 40s, you have to pay off your debt until your 80s.” He said, “The fortress house price has risen a lot. The standard of housing prices and income standards for dual-income couples are also unrealistic,” he said. “It is a policy that will help the people more to increase the supply of housing so that they can get their own home, rather than asking the common people to make a 40-year loan.”
Reporter Na Jin-hee [email protected]
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