If you have a Jeonse loan, save on interest by using the transfer service.

Since January 31, the Korean government has been implementing the ‘Jeonse Loan Transfer Service’ to reduce the loan interest burden on citizens. If a person who received a 100 million won jeonse loan with an interest rate of 3.6% per year changes the interest rate to 3.4% through this service, he or she can save 200,000 won per year!

*What is jeonse loan transfer? This service allows people who pay higher interest rates than other banks and change their loans to a bank that gives lower interest rates to people who have made a jeonse loan. You can change your lease loan for all houses, including apartments, officetels, and villas, to a new loan with a lower interest rate

*How do I do it? : Compare your existing jeonse loan through 4 loan comparison platforms (Naver Pay, Kakao Pay, Toss, Finda) and 14 banks' own apps (most commercial banks including Shinhan Bank, Kookmin Bank, Woori Bank, Hana Bank, Nonghyup, etc.) You can look up and compare it with other bank jeonse loan products. Use 4 loan comparison platforms ~ You can easily change loans at home using your smartphone without visiting the bank.

*Can anyone do it? : This applies to leasehold loans guaranteed by three guarantee agencies, including Housing and Urban Guarantee Corporation (HUG), Korea Housing Finance Corporation (HF), and SGI Seoul Guarantee Insurance (SGI). You can change the loan 3 months after receiving the existing jeonse loan, and until 1/2 of the existing jeonse contract expires. The reason for this restriction is to prevent frequent loan changes.

However, it is said that this period will increase in the second half of this year. The loan limit for a jeonse loan transfer can be within the existing loan balance. However, if the rental deposit increases while renewing the jeonse contract, the jeonse loan limit may be increased at the discretion of the relevant bank.

*Is this really happening? : Check the interest rate on the loan comparison platform and carefully check for more reasonable loan products. The most important thing here is the interest rate. Be sure to find a bank that offers cheaper interest rates. The process of applying for loan conversion after visiting the bank takes about 10 minutes. Additional questions can be resolved through phone consultation. By the way, since January 9th, a home mortgage loan transfer service has been available, so please use it~~

Mary Eve of Papaya Story