Q: I have been living in Korea for almost 10 years. As of now, I am renting an apartment monthly(월세), but I am interested in renting an apartment through the Jeonse system. Can I get a housing loan as a foreigner?

A: So, this person has been living in Korea for a long time, and they understand the concept of “Wolse (월세)” and “Jeonse (전세)”.

But for foreigners who have not been living in Korea for a long time, this ‘Jeonse’ system can be quite odd and unfamiliar.

So let me explain it a little bit.

Wolse월세 is renting a place month by month.

For Jeonse전세, you do not pay rent. But, as a tenant, you must pay a lot of money to a landlord (about 50-70 percent of the actual housing price) before you move in.

Then you sign a two year contract. For those two years, you do not have to pay any monthly fee to a landlord.

Two years after the contract has ended, the deposit is returned to the tenant.

I think a lot of people here in Korea prefer Jeonse (paying a down payment instead of paying a monthly rent) to Wolse, because a tenant can usually receive a housing loan from a bank. Then the tenant only has to pay the interest.

The interest is usually cheaper than the monthly rent, which is why a lot of people want to use this ‘전세’ system.

So, let me go back to your question.

Can you get a housing loan as a foreigner?

Yes, depending on your status and situation, Korea can provide housing loan packages for foreigners.

If you don’t know which bank to visit, ask your realtor for a recommendation.

Your realtor can give you the number of a teller who specializes in housing loans.

The two most commonly used banks that offer housing loans to foreigners are the 국민 Bank and 신한 Bank.

Whether you are an A-type visa holder, D-type visa holder, E type, or F type visa holder, you are eligible for a housing loan.

They will let you know how much you can borrow based on your salary, status, situation, etc.

You can also check if you are eligible for a loan through the bank. Hope that helps!