[Korea] LTV Metro First Home 70%

Inputs and formula

The ratio on this page is within 70%. The Financial Services Commission’s June 27, 2025 “Household Debt Management Strengthening Plan” (effective June 28) cut LTV for first-time home-purchase mortgages in the Seoul metropolitan area and regulated areas from 80% to 70% and attached a move-in-within-6-months duty. It said areas outside regional regulated zones keep the previous (80%). That is why the title pairs Seoul, Incheon, and Gyeonggi with the 80% restriction. Do not enter 80% as the default in metro or regulated areas.

Formula: 70% limit = (market value × 0.7) − senior loan. Final amount = min(limit, 600 million KRW) (cap on). Comparison 80% = min((market value × 0.8) − senior loan, 600 million KRW). At 1 billion KRW, 80% is 800 million but the cap makes it 600 million; 70% is also cut from 700 million to 600 million, so looking only at the cap they can look the same. At 700 million KRW the story changes. 80% is 560 million, 70% is 490 million. The true shape of the 80% restriction shows up in the range that does not hit the cap. There are reasons both to keep the default example at 1 billion KRW and to try 700 million KRW.

What this calculator shows and what it does not

The 80% comparison is a reference that assumes “the ratio before the rule changed.” Even then, income and product caps meant 80% was not always fully granted. Now 70% and the 600 million KRW cap, move-in, a 30-year maturity, and stress DSR overlap. Didimdol limit cuts were separate. This screen only calculates the collateral ratio and the 600 million KRW ceiling.

If your situation differs, this is not the page

Ordinary unregulated regional cases are regional / Incheon etc. 70%, ordinary no-home buyers in Seoul/Gyeonggi regulated areas are 40%, and first-time buyers in the same regulated areas are Seoul, Gwacheon, Seongnam, Dongtan etc. first-time 70%. Even when the ratio is the same 70%, this page is split out to explain why 80% is blocked in Seoul, Incheon, and Gyeonggi.