[Exclusive] Shared equity mortgage incoming

[Anchor]

A completely different type of mortgage loan will soon be available.

It is called a shared equity mortgage loan.

Instead of a loan, it allows for equity investment to purchase a home, meaning that with 180 million won, you can buy a house worth 1 billion won.

For more details, reporter Hwang Hyun-kyu has the exclusive report.

[Report]

The key to the shared equity mortgage loan is to change 'loan' into 'investment'.

Let's take a 1 billion won apartment as an example.

In a non-regulated area with a maximum loan-to-value ratio (LTV) of 70%, you can borrow up to 700 million won and purchase it with 300 million won in cash.

This is a crucial factor in the continuous increase of household debt, and the shared equity mortgage aims to significantly reduce the need for loans.

The Korea Housing Finance Corporation will invest, rather than lend, up to 40%, or 400 million won.

The remaining 600 million won will be covered by the buyer.

In corporate terms, this is a 60-40 equity ratio, a joint investment.

The 600 million won needed by the buyer can also be financed through a mortgage loan up to 70%.

Ultimately, with 180 million won in cash, you can purchase a house worth 1 billion won.

[Kim Byeong-hwan/Chairman of the Financial Services Commission/Apr. 3: "Let's find a way for policy finance to be utilized in a manner that does not incur debt..."]

The maximum 40% means that the buyer is essentially living in a house owned by the government, so they must pay a usage fee.

The usage fee is a maximum of 2% per year on the investment amount.

If you received a 400 million won equity investment, you would need to pay 8 million won a year.

However, when selling the house, a settlement is required.

If the house price has increased, the profit will be shared according to the equity ratio.

Conversely, if it has decreased, the loss will be borne by the Korea Housing Finance Corporation.

There are no restrictions on the duration of residence, and if you have extra funds, you can increase your equity every two years.

However, not all apartments are eligible.

Only homes priced below 1 billion won in Seoul, 600 million won in Gyeonggi Province, and 400 million won in other regions will be allowed.

The government has selected 1,000 housing units for a pilot project and is preparing a maximum of 400 billion won in necessary funds.

The goal is to implement it in the second half of this year, but there is a possibility of adjustments after the presidential election.

This is Hwang Hyun-kyu from KBS News.