[Korea] LTV Regulated Area 40%

Inputs and formula

The ratio on this page is 40%. As of 2026 this is the housing-mortgage LTV guided for ordinary no-home buyers and sale-conditional one-home owners in regulated areas (speculation zones, overheated speculation districts, and adjustment-target areas). First-time and policy mortgages can use a higher ratio, so use those other pages.

Formula: LTV limit = (market value × 0.4) − senior loan. With the 600 million KRW cap on, final amount = min(LTV limit, 600 million KRW). At 1 billion KRW market value and 0 senior loan, the ratio limit is 400 million KRW, which is below the 600 million cap, so the final amount is 400 million KRW and own funds are 600 million KRW. At 1.5 billion KRW the ratio limit equals the 600 million KRW cap. Above that market value, the cap binds before the ratio.

Desired-loan mode: required market value = (desired amount + senior loan) ÷ 0.4. To borrow 400 million KRW at 40% you need 1 billion KRW market value. If the desired amount exceeds 600 million KRW, a warning appears when the cap field is on.

What this calculator shows and what it does not

In regulated areas it is not only a lower ratio. A 30-year maturity cap on purchase-purpose mortgages, a move-in-within-6-months duty, a short sale deadline if sale-conditional, and stress DSR overlap. This screen does not fold that overlap into one number. 40% is a collateral story of “up to 40% of the home price”; monthly repayment is an income story.

Additional purchase-purpose mortgages for multiple-home owners in the metro area and regulated areas have been guided as LTV 0% (origination restricted). This calculator’s 40% is not that case.

If your situation differs, this is not the page

If it is not a regulated area, or it is a regulated area but you qualify as a first-time buyer, it is not 40%. Go to regional / Incheon etc. unregulated 70%, Seoul, Gwacheon, Seongnam, Dongtan etc. first-time 70%, or Seoul, Incheon, Gyeonggi first-time 70%.