10.15 Real estate countermeasures Part 2 | Simulating loan limit calculations

10.15 The key to real estate preparedness is Significant reduction in home equity lines of credit. In the triple jurisdiction, the LTV 40% Limitby home price range with Tiered loan limitswill apply. In this article, we'll show you how much you can borrow in a real-world trading situation using the Simulate specific calculationsto analyze and create a plan for raising equity capital.

Key to the Lending Limit Change: LTV 40% Limit

Mortgages in tri-county areas are not eligible for the existing Significantly reduced LTV from 70% to 40%This means you'll need to come up with at least 601 TP3T of the home's price in cash, and the equity burden increases dramatically for higher-priced homes.

1Loan limits by home price range

Tiered loan limits based on home value, Based on KRW 1.5 billionwhich results in a significant difference. For houses over KRW 1.5 billion, the loan limit is Between $200 million and $400 millionto the following.

• 900 million or less: Up to KRW 3.6 billion (LTV 40%)
• 900 million to 1.5 billion: Up to KRW 600 million (LTV 40%)
• Over 1.5 billion: Loans for the purpose of purchasing a home are prohibited in principle. However, relocation expenses, living stabilization funds, etc. Absolute limit of 200-400 million won for exceptional purposes onlyis applied.

Simulate calculations for real-world trading scenarios

Let's use a specific trading example to calculate the actual equity required after the 10.15 measures. 2 price ranges for apartments in Seoulto run the simulation.

1Scenario 1: Buying an apartment for 800 million won

800 million won apartmentwith an LTV of 40%, you can use the Loans up to $300 millionis possible. This means that 4.8 billion won in equity capital is required, and the actual amount required is even higher when you factor in acquisition taxes and brokerage fees.

2Scenario 2: Buying a high-priced apartment for KRW 2 billion

In principle, it is impossible to get a mortgage to buy an apartment with a selling price of 2 billion won. Absolute maximum of KRW 400 million only in exceptional cases, such as for relocation purposesThe result is a huge equity capital requirement of over KRW 1.6 billion, which effectively blocks middle-class migration to upscale locations.

Loan approval terms and execution strategy

When calculating your loan limit LTV and DSR regulations apply simultaneouslyof which Lower limitThe DSR 40% criteria can sometimes be more restrictive on loan limits than the LTV 40% criteria, especially in triple-tier regulated areas, so a comprehensive lending strategy is essential.

1DSR 40% Standards and Income Requirements

For real borrowers, the DSR 40% threshold is typically a stronger constraint on loan limits than LTV. It's helpful to emphasize that DSR trumps LTV, which can lead to lower limits.