Overview

The Newborn Special Loan Calculator estimates monthly repayments and total interest for Korea's government-subsidized low-interest mortgage designed for households with newborns. Introduced in January 2024, this program offers interest rates of 1.6–3.0% per year to families who have had a child (including adoption) within 2 years of the loan application date. The calculator reflects 2026 income and asset criteria to simulate loan eligibility and repayment plans.

Formula

Monthly Payment (Equal Principal & Interest) = Principal × [r(1+r)^n] / [(1+r)^n − 1]

• r = Monthly interest rate (Annual rate ÷ 12)
• n = Total repayment months
• Income-based rates: ≤20M KRW: 1.6%, ≤40M: 2.0%, ≤60M: 2.4%, ≤80M: 2.7%, ≤130M: 3.0%
• Additional child: −0.2%p per child (minimum 1.2%)
• Loan limit: Up to KRW 500M (within 80% LTV)

How to Use

1. 1Enter the property purchase price and desired loan amount.
2. 2Enter the combined annual household income.
3. 3Select the number of children (including newborns born within 2 years).
4. 4Select the loan term (10/15/20/30 years).
5. 5Click 'Calculate' to see the applicable interest rate, monthly payment, and total interest.

Tips

• ✔Ultra-low rates of 1.6–3.0% per year offer significant interest savings compared to standard mortgages.
• ✔The maximum loan amount is KRW 500M, subject to an 80% LTV cap.
• ✔Each additional child reduces the rate by 0.2%p, down to a minimum of 1.2%.
• ✔You can refinance an existing mortgage into the Newborn Special Loan — check your eligibility.

FAQ