A ₩10M difference in price needs ₩210M more cash
Cross ₩1.5bn by ₩10M and the borrowing cap drops from ₩600M to ₩400M. It does not taper. It falls like a step.
Conditions used in the video
- LTV band
- regulated zone, no home owned: 40%
- Lending rate
- 4.74%
- Stress rate
- +3.0%p
- Loan term
- 30 years
- Annual income
- ₩130M (high enough that DSR does not bind)
Results
- ₩1.5bn home, final limit
- ₩600M
- ₩1.5bn home, cash needed
- ₩900M
- ₩1.51bn home, final limit
- ₩400M
- ₩1.51bn home, cash needed
- ₩1.11bn
- Difference in price
- ₩10M
- Difference in limit
- ₩200M
- Difference in cash needed
- ₩210M
At a glance
It does not rise in proportion. Each band has a fixed value, and crossing a boundary drops it one step.
The price differs by ₩10M; the limit differs by ₩200M.
- ₩1.5bn home₩600M
- ₩1.51bn home₩400M
A ₩10M difference in price returns as a ₩210M difference in cash, 21 times the cause.
- ₩1.5bn home₩900M
- ₩1.51bn home₩1.11bn
- Extra cash needed₩210M
21 times the ₩10M price difference
Why it works this way
It is easy to assume the borrowing limit scales with the price, so that a dearer home means a bigger loan. Under the amount cap it does not work that way.
Mortgages in the capital area and regulated zones carry an amount cap set by price band: ₩600M up to ₩1.5bn, ₩400M from ₩1.5bn to ₩2.5bn, and ₩200M above that. Within a band the cap is flat; at the boundary it drops all at once.
So a ₩1.5bn home and a ₩1.51bn home split at ₩600M against ₩400M. The price differs by ₩10M and what you can borrow differs by ₩200M. Exceed ₩1.5bn by even ₩1M and the outcome is the same. There is nothing in between.
Each constraint is computed separately and the lowest becomes the final limit.
- LTV 40%₩604M
- Amount cap (above ₩1.5bn)₩400M
- Lowest of them₩400M
At ₩1.5bn the cap would be ₩600M, so the ₩600M LTV limit would pass through untouched. ₩10M changes this one box.
In cash terms the gap widens further. Buying a ₩1.5bn home with ₩600M of debt takes ₩900M of your own money. Buying a ₩1.51bn home with ₩400M takes ₩1.11bn. The home costs ₩10M more and you need ₩210M more cash, 21 times the cause.
A high income does not get you past it. The amount cap applies regardless of income. If anything, a lower income means DSR sets the limit first and hides the cliff; it is those with enough income who hit it head on.
The same structure repeats at the ₩2.5bn boundary, where ₩400M is cut to ₩200M. If you are looking at homes near a boundary, check the price band before you sign. Negotiating ₩10M can decide ₩200M of cash.
Note that the price here is not the contract price but the home value the lender recognises. How that is assessed can differ between lenders, so the actual terms need confirming.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
금융위원회 「주택시장 안정화 대책」 (the 10.15 measures)
In force 16 October 2025
The amount cap on mortgages in the capital area and regulated zones is set by home price: ₩600M up to ₩1.5bn, ₩400M from ₩1.5bn to ₩2.5bn, and ₩200M above ₩2.5bn.
What this means
At each boundary the limit falls like a step rather than tapering. Exceed a boundary by a little and the limit drops in ₩200M units.
Effects of regulated zone designation
In force date of designation notice
In a regulated zone, LTV is 40% for those owning no home, 0% for existing owners, and 70% for first-time buyers.
What this means
At ₩1.5bn, 40% LTV is ₩600M, the same as the amount cap. Nudge the price up and the LTV limit rises slightly, but the amount cap falls to ₩400M and takes over as the binding constraint.
Run it on your own numbers
The calculator opens with these conditions already filled in. Change the figures and your own case comes straight out.
Open the Mortgage Limit Calculator
Frequently asked
Is the ₩1.5bn measured on the contract price?
It is the home value the lender recognises. That can differ from the contract price, and assessment methods vary between institutions, so confirm the actual terms if you are near a boundary.
Can a high income get past this?
No. The amount cap applies regardless of income. If anything, a lower income means DSR sets the limit first and hides the cliff; those with enough income hit it directly.
Does exceeding ₩1.5bn by ₩1M cut it just the same?
Yes. The cap changes the moment you cross the band. By how much you crossed does not enter into it.
Is the ₩2.5bn boundary the same?
The same. Above ₩2.5bn the cap falls from ₩400M to ₩200M. The structure is identical, so check it the same way near that boundary.
What sets the limit in my case?
The calculator marks which of the amount cap, LTV and DSR decided your final limit. If the amount cap binds, check the price band; if DSR binds, look at your income and existing loans.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.