The Ultimate Guide to Home Lease Deposit Loans for Foreigners in South Korea

Are you a foreigner or of foreign descent living in South Korea and considering renting a home? Understanding the options available for lease deposit loans can significantly ease your financial planning.

This guide explores the key details about home lease deposit loans, focusing on the significant offerings by Shinhan Bank and KB Kookmin Bank.

Shinhan Bank: The Dream Lease Loan

Overview:

The Dream Lease Loan by Shinhan Bank is designed for foreigners or those of foreign descent aiming to rent a house in South Korea. It’s accessible once a rental contract is signed through a real estate agency and at least 5% of the lease deposit is paid.

Eligibility Criteria:

• Must be a non-homeowner or own just one home with specific conditions, such as it not being in an overheated speculation district and valued at less than 900 million KRW.

• Must be 19 years or older with proof of income.

• The financial burden ratio must be within 40%.

Eligible Properties:

• Apartments, multi-family homes, residential officetels, and senior welfare homes are eligible.

• Detached houses are excluded.

Loan Limit and Interest Rate:

• Up to 200 million KRW, covering up to 80% of the lease deposit.

• Interest rates can include up to a 1% discount based on various banking transaction criteria.

Loan Duration and Repayment:

• Term: 3 to 36 months, matching the lease contract period.

• Repayment: Lump-sum repayment or installment repayments.

Required Documents:

• Original rental contract with a fixed date.

• Copy of the landlord’s bank book.

• Deposit receipt and relevant identification and proof of residence in South Korea.

KB Kookmin Bank: Welcome Plus Lease Deposit Loan

Product Summary:

This product offers lease deposit loans for foreigners and foreign nationals over the age of 19 who intend to rent a home.

Eligibility:

• Must secure at least 5% of the lease deposit through a real estate agent.

• Visa must be valid for at least three months at the time of application.

• Renters or spouses (including fiancées) must own zero or one property, with specific income and property value conditions.

Loan Amount and Terms:

• Up to a maximum of 200 million KRW, not exceeding 80% of the lease deposit.

• Actual loan amounts depend on individual credit evaluations, including income and debt levels.

Loan Period:

• Terms range from three months to two years, renewable for up to 10 years, aligning with the lease term extension agreements.

Repayment Methods:

• A choice of lump-sum repayment, equal installment repayments, or a combination is available.

Interest Rates:

• Rates range from 3.63% to 4.96%, adjusted based on the applicant’s creditworthiness and market conditions.

For both banks, interested applicants should directly consult the respective banks to discuss specific terms, interest rates, and requirements based on personal circumstances.

This guide offers an initial glance at the available options for foreigners and overseas nationals in South Korea considering renting a property. It’s advisable to contact the banks for a personalized consultation to determine the best fit for your financial situation.