Mortgage Calculator — South Korea
Estimate your monthly mortgage payment in KRW using South Korea's typical rates, and see the full interest cost. No signup, no account needed.
Home loan rates in South Korea (2026)
South Korean mortgages price off COFIX (the Cost of Funds Index), not the Bank of Korea base rate directly — most floating-rate home loans reset to COFIX plus a bank margin. COFIX reached 3.18% in July 2026, its highest in 19 months, after the Bank of Korea resumed rate hikes.
As of 28 August 2026, five-year fixed mortgage rates at the five largest commercial banks — KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup — ranged 4.72%–7.17%; floating (COFIX-linked) rates ran 4.20%–6.55%. Both rose roughly 0.5–0.94 percentage points since December 2025.
| Rate type | Range across KB / Shinhan / Hana / Woori / NH (28 Aug 2026) |
|---|---|
| 5-year fixed | 4.72% – 7.17% |
| Floating (COFIX-linked) | 4.20% – 6.55% |
Reference figures, ~2026. Per-bank rates move weekly — this calculator defaults to 5.0% (mid of the current fixed band). Verify current rates with your bank before deciding.
How much can you borrow? Korea's LTV & DSR rules
Two limits both bind — your loan is the smaller of what LTV and DSR allow:
- LTV (loan-to-value): Seoul and major Gyeonggi cities (regulated areas) are capped at 40% — you need at least 60% of the price in cash. First-time buyers outside regulated areas can reach 70%.
- DSR (debt service ratio): all your annual debt repayments (this mortgage plus car loans and credit lines) can't exceed 40% of verifiable annual income.
- Stressed DSR (2026): banks qualify you at your actual rate +3.0 percentage points (a 5.0% loan is tested at 8.0%), so the amount you qualify for is smaller than raw DSR math implies.
Worked example
For every ₩1,000,000 borrowed at 5.00% over 20 years:
- Monthly payment: ₩6,600
- Total repaid: ₩1,583,894
- Total interest: ₩583,894
Scale this to your loan amount — e.g. ₩3,000,000 costs about 3× these figures. A larger deposit and shorter term cut the interest sharply.
A realistic example: buying in Seoul
A ₩800,000,000 apartment in Seoul (a regulated area → 40% LTV) caps the loan at ₩320,000,000.
At 5.0% fixed over 30 years: monthly repayment ≈ ₩1,718,000.
Under the 2026 stressed-DSR test (5.0% + 3.0% = 8.0%): the payment is assessed at ≈ ₩2,348,000/month — meaning you'd need verifiable annual income of roughly ₩70.4 million to stay within the 40% DSR cap.
Formula: M = P·r·(1+r)n ÷ ((1+r)n − 1); r = monthly rate, n = months. Figures recomputed and checked.
Frequently Asked Questions
Is my Korean mortgage fixed or floating?
Most South Korean mortgages are floating, reset periodically against COFIX (the Cost of Funds Index) plus a bank margin. Five-year fixed and 'mixed' fixed-then-floating products also exist at the major banks.
Why did my approved loan amount drop in 2026?
Banks now qualify borrowers using a stressed DSR test: your actual rate plus 3.0 percentage points. A 5.0% loan is assessed as if it cost 8.0%, which lowers the amount you qualify for even though your real rate hasn't changed — see the worked example above.
Can foreigners get a mortgage in South Korea?
Yes, generally, subject to residency and visa conditions, though LTV limits and required documentation can differ from those for Korean nationals — confirm the current rules with the lender before applying.
What is COFIX and how often does it change?
COFIX (the Cost of Funds Index) is published monthly by the Korea Federation of Banks and is the benchmark most floating-rate mortgages track, resetting periodically as it moves.
Bank loan or a policy mortgage like HF Bogeumjari — which is cheaper?
Government-backed policy mortgages can offer a lower rate than a standard bank loan, but they come with income and property-price caps that not every buyer will qualify for.
How does the 40% Seoul LTV limit compare to outside Seoul?
Seoul and other regulated areas cap loan-to-value at 40%, so you need at least 60% of the price in cash. First-time buyers outside regulated areas can typically borrow up to 70% of the price.
Related calculators
Sources
Five-major mortgage rate range and COFIX 3.18% (28 Aug 2026): Seoul Economic Daily, “Korean Mortgage Rates Near 8%…”. LTV/DSR and stressed-DSR rules (2026): KR Insider — Korea mortgage rules. COFIX benchmark: Korea Federation of Banks (KFB) monthly COFIX release. See our methodology and editorial policy for how we source and update this data.