How are South Korean mortgage repayments calculated?

The tool uses the standard amortising loan formula. The monthly rate is the annual rate divided by 12, and the repayment is the loan times that rate divided by one minus (1 plus the monthly rate) to the negative number of months. This is the equal monthly payment that fully repays the loan over the term.

What is the LTV cap in South Korea?

The loan-to-value cap (담보인정비율) limits how much you can borrow against the property value, and it varies by region, buyer status and regulation — commonly between 50% and 80%. The tool flags when the requested loan exceeds the cap you select, meaning you would need a larger deposit to qualify.

What is the 40% DSR rule?

DSR (총부채원리금상환비율), the total debt-service ratio, caps your combined annual debt repayments — including this mortgage and other loans — at a share of your annual income, typically 40% for banks. The tool computes your DSR and warns when it exceeds 40%, in which case a bank would usually reduce the loan amount.

What mortgage rates are typical in South Korea?

Mortgage rates (주택담보대출 금리) commonly sit around 3% to 5% per year depending on the product, whether the rate is fixed or variable, and your credit profile. Government-backed fixed-rate schemes such as bogeumjari can offer lower rates to eligible buyers.

Does this include fees or the stress DSR?

No. It is a principal-and-interest estimate. It does not price registration costs, the stress-DSR buffer that adds a notional rate increase, mortgage insurance, or government scheme conditions. Confirm exact limits and rates with your lender.

South Korea Mortgage Calculator

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A South Korea mortgage calculator that models a home loan (주택담보대출) the way Korean banks actually assess it: monthly repayments, your loan-to-value ratio against the LTV cap, total interest, and the 40% DSR debt-service test.

How it works

The loan is the price minus your deposit. Repayments use the standard amortising formula:

M = P * r / (1 - (1 + r)^-n)

where P is the loan, r is the monthly rate (annual rate divided by 12) and n is the number of months.

Two regulatory rules shape approval:

LTV (담보인정비율) = loan / property value. The cap is commonly 50%–80% depending on region and buyer; the tool flags a loan that exceeds the cap you set.
DSR (총부채원리금상환비율) = (annual mortgage + other annual debt) / annual income. Banks generally limit this to 40%, so the tool warns when your total debt service breaches it.

Example and notes

Buy a ₩700,000,000 home with a ₩210,000,000 deposit at 4% over 30 years, with a 70% LTV cap and ₩80,000,000 income. The loan is ₩490,000,000 (70% LTV, at the cap), and the monthly repayment is shown alongside the DSR figure so you can see whether income supports the loan.

This is a principal-and-interest estimate. LTV and DSR caps vary by region and regulation, and the stress-DSR buffer and fees are not modelled. All figures are calculated locally in your browser.