The prospective bridegroom A recently experienced a loss of her credit score after acquiring a newlywed house with an apartment charter. The reason was that the jeonse deposit was shared with the bride in half, and the jeonse lease contract was also made under the’joint name’ of the couple.
[금융SOS]Out-of-home loans tenants must know
In the real estate contract, when the tenant receives a jeonse loan under the joint name of a couple, a joint guarantee is also required. Mr. A received a loan in the name of the bride, and he signed a joint guarantee. Mr. A regretted that “I made a joint guarantee because of the joint name (the credit score was lowered), but I would be penalized for obtaining additional loans in the future.”
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“Tenant joint name, no tax benefit”
Like Mr. A’s couple, if the bride and groom combine the money to make a deposit for a lease, a lease contract is sometimes under the joint name of the couple. At this time, if the chartered loan is a product guaranteed by the Housing Finance Corporation (hereinafter referred to as Jugeumgong) or the Housing and Urban Guarantee Corporation, excluding the Seoul Guarantee Insurance, a joint guarantee is required.
Even if the Financial Consumer Protection Act (Money Soo Act) is enforced, the joint guarantee contract method remains the same. Regarding this, an official from the Financial Services Commission said, “After the enforcement of the Gold Soap Act on the 25th, joint guarantees by third parties were prohibited in personal loan products, but loans with guarantees by the Korea Housing Finance Corporation and the Housing and Urban Guarantee Corporation are not covered by the (Kumso Act).” Explained.
The joint guarantee can affect your credit score (rating). An official from a bank explained, “If you make a joint guarantee on a cheonsei loan, the history of using the guarantee for financial institutions such as the main banker remains, so you can recognize it as a person with a history of making a loan in the past.”
Loan interest calculation. Shutterstock
Experts agree that if you are a chartered tenant, you should weigh the profits and losses before writing a contract under the joint name of the couple. Dae-Jung Kwon, a professor at the Graduate School of Real Estate at Myongji University, emphasized, “If you are a landlord, a joint name can be beneficial for tax savings, but if you are a tenant, there is no tax benefit from the joint name.” However, he added, “The tenant’s joint name assumes that the couple has half the jeonse deposit, so even if the jeonse deposit is seized due to the husband’s debt, the deposit on the wife’s side can be kept.”
If you have exceeded the limit of the increase in the deposit
What should I do if the landlord raises some of the deposit when extending the jeonse contract and cannot meet the loan conditions? For example, a 500 million won jeonse deposit increased by 5% to 525 million won.
Loaning out is usually subject to an upper limit on the amount of the deposit. If the deposit of the jeonse exceeds 500 million won in the metropolitan area and 300 million won in the local area, the loan is not allowed if the loan is made with a guarantee from the Korea Housing Finance Corporation. However, it is possible to extend the loan once on the condition that the loan amount will not be increased even if the deposit amount for leased loans exceeds the upper limit.
A bank official said, “If the loan conditions are broken due to the increase of the deposit, there is a method of extending the loan once without increasing the amount of the loan (main banker), or changing to a chartered loan with Seoul Guarantee Insurance.” This is because Seoul Guarantee Insurance does not have a limit on deposits for jeonse and has a maximum loan limit of 500 million won, which is higher than that of the main bank (200 million won).
In addition, if an extension of maturity is required, it is safe to ask the bank to extend the maturity at least one month in advance. In general, this is because banks go through a process of re-checking the customer’s credit status when examining the extension of the maturity of a customer who is using a jeonse loan.
Reporter Jiyu Hong [email protected]
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