🏠 Mortgage Calculator
Enter the home price, loan amount, rate and term to see your monthly payment, total interest, and the annual income a Korean bank wants to see for this loan.
How to use
Enter the price of the home and the amount you want to borrow — or switch to LTV % to borrow a share of the price instead. Change the interest rate, term and repayment type and the monthly payment, total interest and the annual income needed to stay within a 40% DSR all update together. If you have other loans (a personal loan, car loan, another mortgage), enter their annual payments so the income figure is realistic. Amounts are shown in Korean won, but the payment math works for any currency — just read ₩ as your own currency.
Monthly payment formulas
- Level payment (standard fixed-payment amortization, called wonrigeum gyundeung in Korea):
M = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan, r = annual rate ÷ 12 and n = number of months - Level principal (wongeum gyundeung): each month repays
P ÷ nof principal plus interest on the remaining balance, so payments fall over time - Interest-only / balloon (mangi ilsi): you pay only interest and repay the whole principal at maturity
- LTV:
loan ÷ home price × 100 - Income needed:
(annual payments on this loan + annual payments on other loans) ÷ 0.4
Example: borrowing ₩400M on an ₩800M home at 4% for 30 years (level payment) costs about ₩1.91M a month, or ₩22.92M a year, so a Korean bank applying the 40% DSR rule wants an annual income of roughly ₩57.3M or more. Total interest over 30 years is about ₩287M.
What limits a mortgage in Korea
- LTV (loan-to-value) — loan as a share of the home’s value; 40–80% depending on region and how many homes you own
- DSR (debt service ratio) — annual principal + interest on all your loans ÷ annual income; 40% at banks, 50% at non-bank lenders
- Amount caps — as of this writing, mortgages in the capital region and regulated areas are capped at ₩600M, ₩400M or ₩200M depending on the home price
Your real limit is the smallest of the three. With a modest income, DSR usually bites before LTV does.
Longer term or shorter term?
A longer term lowers the monthly payment and the DSR burden but sharply increases total interest. Compare 30 and 40 years side by side. In real DSR screening, a stress rate is added to variable-rate loans, so the income required can be higher than shown here.
Fixed, variable and hybrid rates
Fixed rates stay the same to maturity, so budgeting is easy. Korean variable rates usually reset every six months based on COFIX or bank bond rates. Hybrid loans are fixed for around five years and then switch to variable. On a variable loan, try adding 1–2 percentage points to the rate to see how much your payment could rise.
Mortgages for foreigners in Korea
Korean banks do lend to foreign nationals, but usually only to residents with an alien registration card, a long-term visa (F-2, F-4, F-5, F-6 or employment visas such as E-7), Korean-source income they can verify and a credit history in Korea. The loan term may be limited to your remaining visa period. Non-residents typically cannot get a Korean mortgage and buy with cash or overseas financing.
You need more cash than price minus loan
The “down payment needed” figure excludes acquisition tax (1.1–3.5% or more of the price), the agent fee, judicial scrivener fees and moving costs. Add them with the acquisition tax and agent fee calculators.
Korean lending rules change often with government housing measures. Figures are examples as of October 2026; your real limit depends on the bank’s review (how your income is recognized, credit score, property type, policy loan eligibility and, for foreign nationals, your visa and residence status). Always confirm with the Financial Services Commission announcements and the bank you plan to use.