Product summary

Product characteristics

• This is the "IBK representative mortgage" product that allows the customer to freely choose loan rates, loan periods, repayment methods, and repayment cycles according to his/her financial plan or lifecycle.
• At the time of prepayment within the scope of 10% of the balance at the end of the previous year (the first loan in the loan handling year) every year (January 1st to December 31st), the prepayment cancellation fee can be reduced or exempted in advance.

Contract Period

• Lump sum repayment loan: Within 5 years
• Reimbursement in equal installments: Within 40 years

Interest calculation method

• Choose between fixed interest rate, variable interest rate (KORIBOR, COFIX), or 5-year cyclical variable interest rate
  (As of June 27, 2024, annual basis, loan period 40 years, loan amount 200 million KRW, installment repayment, based on housing purchase funds)
• 5-year Cyclical Variable Interest Rate
  - Minimum annual rate: 3.87% ~ Maximum annual rate: 5.17%
  [Base rate (based on the 5-year maturity intermediate bond market evaluation yield of 3.359%) + Additional rate (1.81%p) - Discount rate (0~1.3%p)]
• Variable Interest Rate
  - Minimum annual rate: 5.36% ~ Maximum annual rate: 5.76%
  [Base rate (based on the 3-month COFIX for new balance of 3.20%) + Additional rate (2.56%p) - Discount rate (0~0.4%p)]
• Calculated on a daily basis considering 365 days a year (366 days in a leap year)
  * 5-year Cyclical Variable Interest Rate: The interest rate changes every 5 years, and within 5 years, the interest rate is fixed. The base rate applies to the 5-year maturity intermediate bond market evaluation yield.

Precautions

• Loan interest rates can change later depending on market interest rates and loan conditions (period, amount) after the calculation date.
• If the payment of the loan principal and interest is delayed for a certain period of time or the expiration date has elapsed, you may be registered as a credit management target along with the imposition of overdue interest.

Product benefits and additional services

If you repay in the middle within the scope of 10% of the initial loan every year, the prepayment cancellation fee can be reduced or exempted.

Loan Information

Loan Limit

Up to 40% to 70% of the mortgage value (different by region)

Loan target

Individual customers who wish to provide a house (including neighborhood housing) as collateral or purchase (including successful bid funds) in full.

Security

Method of providing collateral: Establishing the right to collateral security.

Mortgage Offer Feasibility

Repayment Method

Expiration lump sum repayment method / principal(interest) equal installment repayment / partly equal installment repayment

Early repayment cancellation fee

• Fixed-rate loans: repayment amount × 1.2% × (remaining days ÷ loan days),
• Variable interest rate loans: repayment amount × 0.9% × (remaining days ÷ loan days),
• If the number of days of loan exceeds 3 years, it is considered 3 years

Additional expenses

• The cost that the customer has to pay for the new loan is as follows.
  • ① Stamp tax: The tax paid at the time of loan agreement pursuant to the "Stamp Tax Act" is applied differently depending on the loan amount, and banks and customers pay 50% each.
    Stamp tax details
  • ② When establishing the right to collateral security: Discount costs related to the purchase of national housing bonds are borne by the customer. (However, the exact cost is determined on the date of loan execution)
  • ③ The insurance premium (when using Seoul Guarantee Insurance (MCI) is borne by the bank.
• The cost that the customer has to pay while using the loan is as follows.
  • The cost of reducing the maximum amount of bonds in the right to collateral security is borne by the customer
• The cost that the customer must pay at the repaying the loan is as follows.
  • The cost of canceling the right to collateral security is borne by the customer.

Necessary documents

• Certificate of all real estate registration matters provided as collateral
• Sales contract or certificate of right to register
• Certificate of seal impression and seal impression
• Certificate of employment and income
• ID card, resident registration copy, etc.
• Other necessary documents: building management ledger, land use plan confirmation, land register, etc.

Interest payment (imposition) cycle

Interest is paid every certain cycle (monthly, etc.) by setting the interest payment date.

Additional instructions

Loans can be repaid (available from January 1, 2019) on holidays. However, guarantees (MCI, MCG, etc.) loans cannot be repaid on holiday.

Right to request the interest rate cut

Possible

Delayed payment interest

The loan interest rate is applied by adding 3% per annum of overdue calculation rate, but the maximum delayed compensation rate is 11% per annum

Precautions

• If the loan is excessive compared to the repayment ability, your personal credit rating may fall.
• A fall in personal credit ratings can lead to disadvantages related to financial transactions.
• If the principal and interest of the loan are overdue for a certain period of time, the obligation to pay all principal and interest may occur.
• Loans may be restricted if the handling of loans is inappropriate (holding arrears, low personal credit ratings, etc.).
• Loan conditions apply differently depending on the collateral and type of collateral, and loans may be restricted if the collateral is inappropriate.
• Please check the product manual and the terms and conditions before signing the contract related to financial products.
• General financial consumers have the right to receive a sufficient explanation from IBK Industrial Bank of Korea pursuant to Article 19 (1) of the Financial Consumer Protection Act. Please understand the explanation before trading.
• IBK Industrial Bank of Korea does not accept money or entertainment. If there are the violation of ethical management or the improvement is necessary, please report it.
  
  Phone: 02-729-7490
  e-Mail: ibkethics@ibk.co.kr