Demand for safe conversion loans is low due to lack of significant interest rate advantages

The demand for safe conversion loans is low due to the lack of significant interest rate advantages compared to the already high interest rates.

Safe conversion loans are products that convert variable-rate mortgage loans held by ordinary people and real owners into long-term and fixed interest rates at a minimum of 3.7% per year to prevent the interest burden from increasing due to rising interest rates.
The Korea Housing Finance Corporation, which handles safe conversion loans, said, "The demand for applications was dispersed due to the phased application by housing price and the birth year, so online and offline applications were smoothly made." In other words, It prepared for a flood of applications, but the actual popularity is low.
Only single homeowners with a combined income of less than 70 million won and a housing price of less than 400 million won based on the market price can apply, and up to 250 million won can be borrowed within the existing loan balance.
In short, this special contract loan product is a structure in which banks usually receive a little more interest and apply an upper limit to prevent interest rates from rising above a certain level.
"Is it advantageous to give 0.2%p more than my interest rate right now?" This phenomenon, which has many hesitant borrowers, is because the interest rate merit of the product is not significant compared to the insensitive response of financial consumers to the further rise in interest rates.
With interest rates already rising a lot, it is not easy for financial consumers to estimate the extent of additional interest rate increases in the future, and interest rate advantages of products specialized in the period of interest rate hikes are not great and only conditions are tricky.
However, the Federal Reserve, the U.S. central bank, is expected to raise its key interest rate by 0.75 percentage points at the regular meeting of the Federal Open Market Committee (FOMC) in September from the 20th to the 21st.

People have a mentality that they don't like to pin down losses ahead, even if it's only 0.2%p.