Jeonse deposit loans
Consult about a jeonse loan before signing. After signing can be too late.
What is available
- Housing and Urban Fund jeonse loans — low interest, government-funded, with income and asset requirements.
- Banks' own jeonse loans
- LH and local government jeonse rental — not a loan, but the corporation leasing on your behalf. See public-rental-housing.
Products, rates and limits change often. Confirm current terms with the bank and the Housing and Urban Fund (nhuf.molit.go.kr).
The order matters
- Consult the bank first to learn your borrowing capacity.
- Choose a property and check its register. See lease-contract.
- Before signing, confirm with the bank that a loan is possible on that property. Heavy existing mortgages can make a loan impossible.
- Sign the contract and pay the deposit instalment.
- Apply for the loan and go through assessment.
- On completion day the loan is paid to the landlord.
- Move in and file the move-in report and fixed date stamp immediately. See moving-in.
For foreign residents
Eligibility differs by product, based on residence status, length of stay and income. Confirm your own case with the bank and the Housing and Urban Fund.
Where to go
- Housing and Urban Fund nhuf.molit.go.kr
- Participating banks (Woori, KB, Shinhan, NH, IBK and others)
- MyHome 1600-1004
- 132 Korea Legal Aid Corporation (contract disputes)
- 1577-1366 · 1345 interpretation
Questions people ask
I signed first and now the loan is refused. A very dangerous position — which is exactly why bank confirmation before signing is essential. Consult the bank and 132 immediately.
The landlord dislikes loans. Jeonse loans are common practice. But a property's legal encumbrances can block one, which is why it must be checked before signing.
What happens to the loan if my deposit isn't returned? The loan still has to be repaid. That is why deposit return guarantee insurance is worth considering. HUG 1566-9009. See deposit-protection.
The paperwork is difficult. Ask at the bank counter and use 1577-1366 interpretation alongside.
Take care
Beware agents who rush you with "this property gets loans easily". Check the register yourself and account for mortgages and prior claims on the deposit. Signing without checking can cost you the entire deposit.
Related
housing-support-overview · deposit-protection · lease-contract · real-estate-fraud · moving-in
Source
Housing and Urban Fund nhuf.molit.go.kr / As of 2026-08