Getting a Mortgage in Korea

I have limited experience in this area and so details will be sketchy at best.  There is no rule saying that you must be Korean to get a mortgage.  But in any country getting a mortgage is a lengthy and difficult process and just look to the US if you want to see why this is a good thing.

In Korea generally your first mortgage will be a 3 year interest only deal, in 3 years time, you will need to refinance.  Korean banks will loan a maximum of 60% of the banks value for the property or 60% of the sale price whichever is lower.  Many Koreans will take out extra loans to reach the 40% cash threshold, but that won't be an option for most international customers nor a very good idea.

If you have the 40%+ difference in value+real estate fees+legal fees+taxes you then can apply for a mortgage.  I have only met 2 international residents who have successfully gotten a mortgage.  Under Korean law generally, you cannot be refused because you aren't Korean.  One permanent resident did successfully win a case in the National Human Rights Commission after a mortgage insurer refused to cover him due to being "foreign".

I have heard of an E2 visa holder (language teachers visa) who received a mortgage but I don't personally know this person.

In theory it is possible, my bank said to me you can get a mortgage in your name but it would be much easier for you and us if you did it in your (Korean) wifes name.

I will update this entry as more information comes to hand.

If you have any information please write to koreanbankingblog@gmail.com