Jeonse & Mortgage Loans for Foreigners

Visa & eligibility — what banks look at

• F-2 (residence), F-4 (overseas Korean), F-5 (permanent resident), F-6 (marriage) — Closest to Korean resident treatment. Generally eligible at most banks under the same conditions as locals, subject to income and DSR rules.
• E-7 (specialty employment), D-7/D-8/D-9 (corporate/investor) — Eligible at most major banks. Typically require ≥6 months of continuous employment, an alien registration card, and the original employer's certificate.
• E-1 to E-6 (professorship, teaching, foreign-language instruction, etc.) — Eligible at many banks; conditions vary by employer stability.
• D-2 (student), D-10 (job seeker) — Rarely eligible for unsecured loans; Jeonse loans are restrictive (some banks accept with a Korean guarantor).
• Short-term visas (B-1/2, C-3/4) — Not eligible.

Jeonse loans — how the structure works

You do not borrow the deposit yourself in the standard product. The bank pays the deposit directly to the landlord and is repaid by you over the lease term. There are two main rails:

• HUG-guaranteed Jeonse loan — The Housing & Urban Guarantee Corp. guarantees the bank's loan. Lower rates, deposit and income caps apply. Foreigners eligible if visa qualifies.
• HF (Korea Housing Finance Corp.)-guaranteed Jeonse loan — Similar structure; HF guarantees.
• SGI-guaranteed Jeonse loan — Private insurance, broader eligibility for higher-deposit cases.

Banks that commonly lend to foreigners

Bank conditions change. Always confirm with two banks before committing. There is no single "best" bank — rates and willingness depend heavily on your specific visa, income source, and the property.

Typical conditions (illustrative — confirm with the bank)

• Loan amount — Up to 80% of the Jeonse deposit for HUG/HF-guaranteed products; up to ~90% for some F-visa cases. Mortgages follow LTV regulations (50–70% by region).
• Interest rate — Variable rates roughly tracking COFIX + spread. As of recent years, 4–6% range; check current published rates.
• Term — Jeonse loan term matches the lease (2 years); renewable. Mortgages run 10–40 years.
• DSR limit — 40% at first-tier banks; the same rule applies to foreigners.
• Stress DSR — A 1.5%p rate stress is applied for evaluation (recently rolled in stages); reduces borrowing capacity.

Documents to prepare

• Passport + alien registration card
• Visa page with class (F-2/F-4/F-5/F-6/E-7 etc.)
• Proof of income — last 3-6 months of payroll statements, employment certificate, or apostilled tax returns
• Employer's certificate of employment
• The signed Jeonse contract or sale contract
• The landlord's identity verification (for Jeonse loans)
• Property registry copy
• Bank statement (3-6 months) showing rent/utility payments

Tips

• Apply at least 3-4 weeks before lease signing. Bank approval + HUG/HF review takes time.
• If your employer is multinational, ask HR for a Korean-language certificate of employment; banks accept this far faster than English-only documents.
• For mortgages on newly built apartments, the developer often pre-arranges loan packages with specific banks at favorable rates. Check before approaching other banks.
• Foreign income (received abroad) is harder to use as proof. Consider switching the receiving account to Korea for 3-6 months before applying.

References

• Korea Housing Finance Corp. (HF)
• Housing & Urban Guarantee Corp. (HUG)
• Seoul Guarantee Insurance (SGI)
• Jeonse 101 →
• Foreigner Tax →