Even if you borrow 200 million won, the monthly principal and interest is 850,000 won, which is at the level of monthly rent. A 3% "young people's home loan" is coming out.

The 'Chungnyeol Mireogi Jeonjeol' policy, which aims to help young people secure a home and achieve financial stability, will be introduced. Instead of paying monthly rent, young people will make principle repayments, allowing them to build assets and become homeowners. The Financial Services Committee announced this financial package on the 13th, stating that it will be implemented in January next year.

This policy, supplied by the Korea Mortgage Finance Corporation, is intended to support young people in becoming homeowners and achieving financial stability. The policy is designed to provide a stepping stone for young people who find it difficult to purchase an apartment. It will allow them to secure a home first, and then move to a better home.

The policy ensures that first-time homebuyers under 39 years old can continue to receive favorable mortgage loan benefits. Households with a combined annual income of up to 70 million won can also benefit from this policy. The targeted properties are apartments priced at 4 million won or less, with an LTV (Loan-to-Value) ratio of up to 80%.

The interest rate for this policy will be lower than the standard mortgage rate (4.90% to 5.20%), at 3% annual interest. This means that a young person could borrow 2 million won to purchase a home, with a monthly principal repayment of 85,000 won. This is equivalent to the average monthly rent for an apartment, allowing young people to secure a home while paying less than the average rent.

The policy is specifically targeted at non-apartments (non-APART) to provide new options for young single-person households facing high rent burdens. Financial Services Committee Chairman Jin Kang explained that this is not meant to exclude apartments, but rather to offer new opportunities for young people struggling with high rent costs.

The committee will also introduce a 'Joint Cheongnyeol-Woelse Guarantee' policy, which combines both cheongnyeol and woelse (down payment) guarantees. For monthly woelse payments, a negative bank account system will be implemented, allowing users to withdraw funds only when necessary, thus reducing interest payments. Both policies will be launched in January next year, targeting young people under 39 years old with an annual income of up to 70 million won.