Loan conditions available up to 8 weeks before move-in
Up to 1 billion won, 40-year term — full early repayment fee waiver
Kakao Bank announced Wednesday it will launch a pre-sale balance loan product designed for buyers preparing to move into newly built apartments.
A pre-sale balance loan is a mortgage taken out at the time of move-in to repay an existing interim construction loan and cover the remaining purchase balance. While such loans have traditionally required in-person consultations and branch visits, Kakao Bank has made the entire process — from checking loan limits and interest rates to submitting and finalizing an application — available on mobile.
Prospective borrowers can check their estimated loan limit and interest rate roughly two months before the move-in period begins, about two weeks earlier than is typical for balance loans. Kakao Bank said this gives buyers more time to plan their finances or compare products before moving in.
The loan is available to buyers who have signed general-sale contracts for newly built apartments designated by Kakao Bank. Eligible complexes can be found on the product detail page within the Kakao Bank app. The bank plans to gradually extend eligibility to members of redevelopment and remodeling associations.
The loan ceiling is 1 billion won ($739,000), subject to loan-to-value ratio and debt service ratio regulations. The maximum term is 40 years, and borrowers may choose between equal principal repayment and equal principal-and-interest repayment. Early repayment fees are waived in full.
About a month before the move-in period begins, the bank will review whether to lower the interest rate based on market conditions at that time. Kakao Bank said it has put procedures in place to apply any rate reduction retroactively to customers who have already finalized their loan agreements.
Registration procedures will be handled in partnership with a law firm experienced in group registrations covering more than 60,000 households. An affiliated credit information company will visit customers to collect required documents — including the pre-sale contract — and forward them to the law firm, which will then handle acquisition tax filings and title registration.
Kakao Bank said the launch marks its push to extend non-face-to-face mortgage services into the group lending market. The move is expected to intensify competition among internet-only banks in the apartment group loan segment, which has long been dominated by major commercial banks.
"A pre-sale balance loan places a heavy burden on customers because multiple procedures must be completed within a short window tied to the move-in schedule," a Kakao Bank official said. "We will continue to refine our products and services so that customers can access the residential financial services they need more easily and conveniently."
forest@heraldcorp.com
