To lessen the risk and burden for people on high-interest, variable-rate mortgages, a government program is offering refinancing of existing home loans at fixed rates of less than 2 percent.
For comparison, rates normally are around 3 to 4 percent.
Applications are now being accepted at banks and the Korea Housing Finance Corporation, and will be open until the 29th.
They can be submitted 24 hours a day through the website of the Korea Housing Finance Corporation, and online applications get an interest rate discount of a tenth of a percent.
Qualified borrowers can get a rate of 1.8-5 to 2.2 percent.
The program even applies to mortgages from the secondary market and when there are multiple loans on one house.
But it only works for variable mortgages taken out before July 23rd this year.
Also to qualify, you have to have a household income of less than about 72-thousand U.S. dollars and have only one house.
Higher incomes are allowed for younger couples and those with children.
Those who've been married for less than seven years and have two or more children, household income has to be less than about 85 thousand dollars.
Also, refinancing is only possible for homes worth less than about 760 thousand dollars and the loan will be limited to roughly 420-thousand dollars.
There are even lower rates for certain people including newly married couples, single parent families and multi-cultural families starting at about 1.2 percent.
The program will get funding worth about 17 billion dollars.
If demand exceeds supply, priority will be given those with lower-priced homes.
Eum Ji-young, Arirang News.