KakaoBank is launching a balance-payment mortgage loan for buyers moving into newly built apartments, widening its non-face-to-face mortgage business into the group loan market. The product lets customers handle the full process on mobile, from checking loan limits and rates to disbursement.

KakaoBank said on Tuesday it will launch the balance-payment mortgage loan for customers scheduled to move into newly sold apartments.

The loan is a mortgage used during the move-in process to repay existing interim payment loans and pay the remaining balance. It has typically been handled through in-person consultations or branch visits, but KakaoBank has enabled the procedures to be completed in its app.

The loan is available to general-sale contract holders at designated newly sold apartment complexes. Eligible complexes can be checked in the KakaoBank app, and the bank plans to gradually expand eligibility to members of redevelopment and remodeling associations.

Customers can check their expected loan limit and interest rate from about 8 weeks before the start of the move-in period. KakaoBank said this allows customers to confirm terms about 2 weeks earlier than typical balance-payment loans and plan their finances ahead of moving in.

The loan limit is up to 1 billion won within the scope of regulations such as the loan-to-value ratio and the debt service ratio. The maturity is up to 40 years, and borrowers can choose between equal principal instalments and equal principal-and-interest instalments.

Early repayment fees are fully waived. KakaoBank has not charged fees for early repayments on any of its mortgage loans since launching its mortgage products in 2022, and it decides every 6 months whether to extend the waiver policy.

The bank will review whether to make additional rate cuts about 1 month before the start of the move-in period, reflecting market rates. It also plans to allow customers who have already signed loan contracts to receive reduced rates retroactively if rates fall later.

It will also link the registration process with partner law firms. A partner credit information company will visit customers to collect required documents such as sale contracts, and a partner law firm will handle acquisition tax filings and registration procedures.

A KakaoBank official said, "We will upgrade products and services so customers can use housing financial services more conveniently."