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http://dx.doi.org/10.14400/JDC.2021.19.2.013

A Study on the Need to Introduce Super-Long-Term Mortgage to Expand Freedom of Housing Choice  

Hong, Sung-Hyun (Infrastructure Logistics Team, The Presidential Committee on Northern Economic Cooperation)
Hong, Hee-Jeong (Housing Finance Research Institute, Korea Housing Finance Corporation)
Publication Information
Journal of Digital Convergence / v.19, no.2, 2021 , pp. 13-19 More about this Journal
Abstract
The purpose of this study is to find a reasonable solution that is compatible with the government's policy on calming the overheated housing market and the needs of prospective home buyers. For this purpose, this study analyzed the current state of the housing market and looked at the root cause of the people's desire to purchase housing. And this study suggested the need to introduce a super-long-term mortgage system that can help people choose whether to own or rent a house in accordance with individual preferences. The super-long-term mortgage system would be useful in that the majority of people who currently use mortgages prefer long-term loan products and that it could provide a chance to "get their own homes" by easing the monthly repayment burden for those who want to have homes. If the system is introduced in the future, it is necessary to make efforts for stable operation such as risk-hedge. In particular, the government should apply a limited application to end-users so that they can curb rising housing prices and contribute to stabilizing housing prices.
Keywords
Housing; Housing Market; Housing Choice; Real Estate; Super-Long-Term Mortgage;
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