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🇰🇷South Korea EditionUpdated September 2026Bank Lending Rules Audited

South Korea Mortgage Calculator

Accurately model real estate financing in South Korea with local interest rate benchmarks (3.8% - 4.8%), 20% minimum equity rules, and upfront Acquisition Tax (취득세), Judicial Scrivener & Bond Purchase.

🇰🇷South Korea Model
🇰🇷South Korea Mortgage Guidelines & Market Benchmark

The Financial Services Commission (FSC) enforces strict DSR (Debt Service Ratio) caps of 40% across commercial banks along with tiered LTV limits.

Basic Loan Details

Calculate your core monthly principal and interest payment.

SIMPLE
$
$1,000$2,500,000,000
30% of price
$
%
0.1%12%
yr
Monthly Principal & Interest
$2,053,872/mo

Standard base amortization repayment

P & I$2,053,872
Principal & Interest$2,053,872 (100%)
Total Loan Amount
$420,000,000
Total Financing Interest
$319,393,967
Total Lifetime Cost
$739,393,967
Projected Payoff
Oct 2056

Early Repayment & Prepayment Comparison (Amortización Anticipada)

Simulate paying extra principal: compare reducing your monthly payment vs. shortening your loan term.

Active Mortgage
$
$0$420,000,000
$/mo
$0/mo$5,000/mo
Opción 1: Reducir Cuota / ParcelaSame Term

Keeps the original loan term (30 yrs) and lowers your required monthly payment, boosting your ongoing cash flow.

New Monthly Payment:$2,053,872/mo
Monthly Cash Savings:Save $0/mo
Total Interest Saved:$0
Opción 2: Reducir Plazo / PrazoMaximum Savings

Keeps your monthly installment unchanged and dramatically shortens your debt term, slashing total interest paid.

Time Shaved Off Loan:0 Years (0 mo)
New Payoff In:30 Years
Total Interest Saved:$0

Amortization Schedule (USD)

Track how your loan balance decreases and view the shift from interest to equity over time.

YearStarting BalancePrincipalInterestTotal PaidEnding Balance
Year 1$420,000,000+$7,142,926$17,503,540$24,646,466$412,857,074
Year 2$412,857,074+$7,448,772$17,197,694$24,646,466$405,408,302
Year 3$405,408,302+$7,767,713$16,878,752$24,646,466$397,640,589
Year 4$397,640,589+$8,100,311$16,546,154$24,646,466$389,540,277
Year 5$389,540,277+$8,447,151$16,199,315$24,646,466$381,093,127
Year 6$381,093,127+$8,808,841$15,837,625$24,646,466$372,284,286
Year 7$372,284,286+$9,186,018$15,460,448$24,646,466$363,098,268
Year 8$363,098,268+$9,579,345$15,067,121$24,646,466$353,518,923
Year 9$353,518,923+$9,989,513$14,656,952$24,646,466$343,529,410
Year 10$343,529,410+$10,417,244$14,229,221$24,646,466$333,112,166
Year 11$333,112,166+$10,863,290$13,783,176$24,646,466$322,248,876
Year 12$322,248,876+$11,328,434$13,318,031$24,646,466$310,920,441
Year 13$310,920,441+$11,813,495$12,832,970$24,646,466$299,106,946
Year 14$299,106,946+$12,319,326$12,327,140$24,646,466$286,787,620
Year 15$286,787,620+$12,846,815$11,799,651$24,646,466$273,940,806
Year 16$273,940,806+$13,396,890$11,249,576$24,646,466$260,543,916
Year 17$260,543,916+$13,970,518$10,675,948$24,646,466$246,573,398
Year 18$246,573,398+$14,568,707$10,077,758$24,646,466$232,004,691
Year 19$232,004,691+$15,192,511$9,453,955$24,646,466$216,812,180
Year 20$216,812,180+$15,843,024$8,803,442$24,646,466$200,969,157
Year 21$200,969,157+$16,521,390$8,125,075$24,646,466$184,447,767
Year 22$184,447,767+$17,228,803$7,417,662$24,646,466$167,218,963
Year 23$167,218,963+$17,966,506$6,679,959$24,646,466$149,252,457
Year 24$149,252,457+$18,735,796$5,910,669$24,646,466$130,516,661
Year 25$130,516,661+$19,538,026$5,108,440$24,646,466$110,978,635
Year 26$110,978,635+$20,374,605$4,271,861$24,646,466$90,604,030
Year 27$90,604,030+$21,247,005$3,399,461$24,646,466$69,357,025
Year 28$69,357,025+$22,156,759$2,489,706$24,646,466$47,200,266
Year 29$47,200,266+$23,105,468$1,540,998$24,646,466$24,094,798
Year 30$24,094,798+$24,094,798$551,668$24,646,466$0
Monthly Principal & Interest
$2,053,872/mo

Essential Lending Standards in South Korea

Strict government DSR (Debt Service Ratio) cap of 40% across all household loan obligations.

Tiered LTV limits based on designated Speculative Overheated Zones (투기과열지구) and first-time buyer status.

Acquisition tax (취득세) ranges from 1% to 3% for single-home owners, rising steeply for multi-home owners.

Unique parallel rental housing system: Jeonse (전세 lump-sum deposit lease) exists alongside purchase mortgages.

Borrowing Limits & Stress-Testing in South Korea

The Financial Services Commission (FSC) enforces strict DSR (Debt Service Ratio) caps of 40% across commercial banks along with tiered LTV limits.

Property Taxes & Upfront Purchase Costs

Property buyers pay acquisition tax (취득세) of 1% to 3% on standard primary homes. Annual ownership includes local property tax and Comprehensive Real Estate Holding Tax (종부세) on luxury properties.

Estimated Upfront Fees: Budget approximately 2.5% for Acquisition Tax (취득세), Judicial Scrivener & Bond Purchase. In most situations, these fees must be covered in liquid cash and cannot be rolled into the mortgage.

Frequently Asked Questions

What is the minimum down payment required in South Korea?

In South Korea, buyers typically require at least 20% equity down payment. However, maintaining 20% equity often eliminates additional mortgage insurance charges.

What are the average upfront purchasing fees in South Korea?

Upfront transaction fees (Acquisition Tax (취득세), Judicial Scrivener & Bond Purchase) average approximately 2.5% of the purchase price and must usually be funded with cash equity.