Can a foreigner get a mortgage in Korea?
Yes, if you live and earn in Korea. The hard part is not nationality but the 2025–26 lending caps, which apply to everyone in Seoul and shrink a mortgage to a fraction of the price. Here is what you can borrow and what the bank will ask.
- 1. The rules everyone faces in 2026
- 2. What banks add for foreign borrowers
- 3. Rates and terms in 2026
- 4. Costs of taking the loan
- 5. Practical guidance
The rules everyone faces in 2026
Two numbers bind at once: the LTV percentage and the won cap. On a KRW 1.2B Seoul apartment, 40% is 480M, under the 600M cap — so 480M. On a 2B apartment 40% is 800M but the cap is 400M — so 400M, leaving 1.6B to fund yourself. DSR (all debt service ≤ 40% of income, with a 3-point stress rate added to the mortgage rate) then trims further for ordinary salaries.
| Area | Max LTV | Loan cap | Other |
|---|---|---|---|
| Seoul (all) and 12 Gyeonggi cities — regulated | 40% | KRW 600M if price ≤ 1.5B; 400M if 1.5–2.5B; 200M above 2.5B | Move in within 6 months; stress DSR at 3% add-on |
| Rest of the capital region | 70% | KRW 600M | Move in within 6 months |
| Outside the capital region | 70% | No national cap (bank policy) | DSR 40% still applies |
| First-time buyer (non-regulated area) | 70% | KRW 600M | Regulated area: 40% like everyone since Oct 2025 |
What banks add for foreign borrowers
Korean banks lend to foreigners under their own credit policies, and the common conditions are: an Alien Registration Card with a visa that permits long-term stay and work (E-7, F-2, F-4, F-5, F-6 are routinely accepted; D-visas and short-term stays are not); at least 6–12 months of Korean employment or business income, evidenced by 원천징수영수증 or tax returns; a Korean credit history — a credit card used for a year helps; and the property in your own name in Korea.
Non-residents — no ARC, income abroad — are effectively excluded from residential mortgages. A few banks offer loans against a property if you also hold substantial deposits with them, but that is private-banking territory, not a mortgage product.
Rates and terms in 2026
Rates for foreigners are the same as for Koreans: a base (COFIX or bank bond yield) plus a margin, roughly 3.5–4.5% for variable and slightly higher for 5-year fixed, as of September 2026. Terms run up to 40 years for borrowers under 40, else 30 years. Prepayment fees have been low since 2025 — around 0.5–0.7% shrinking to zero over 3 years — so refinancing is cheap; the prepayment-fee calculator shows the exact number.
Documents: passport, ARC, employment certificate, income proof, the sale contract, the property register and, in the permit zones, the land-transaction permit. Approval takes one to two weeks; apply as soon as the contract is signed, because closing is usually within 1–3 months.
Costs of taking the loan
Registering the bank's lien (근저당 설정) costs about 0.2–0.4% of the lien amount (usually 110–120% of the loan) in registration tax, education tax and bond, and is normally paid by the bank; a KRW 400M loan carries roughly KRW 600k–900k of lien costs. Fire insurance on the building is required. Neither is included in the total-cost calculator, which covers the purchase itself.
Practical guidance
- Get a pre-screening (사전심사) from two banks before you make an offer; foreigners are declined more often on documentation than on numbers.
- In Seoul, assume the loan is the smaller of 40% and the cap and fund the rest — do not bid expecting a 70% mortgage.
- Officetels bought as investments fall under non-housing rules (LTV 40% in permit zones) and rental income counts toward DSR.
- If you plan to leave Korea within the loan term, ask about the bank's policy on borrowers who lose residency — some require repayment on ARC expiry.