(new + existing annual loan payments) ÷ annual income, with a stress add-on rate on the new loan
Input
H2 2026 (to Dec 31): 3.0%p for variable-rate mortgages in the Seoul area and regulated zones, 0.75%p elsewhere; hybrid and periodic-reset loans get only part. Ask the bank
DSR = all annual loan payments ÷ annual income. The personal limit is 40% at banks and 50% at non-bank lenders.
Stress DSR adds a rate to the real rate when calculating payments, lowering the limit. Foreign residents are assessed the same way, using income documented in Korea.
Equal installments (원리금균등) keep the payment the same every month; equal principal (원금균등) starts higher and falls each month, with less total interest.
This is an estimate; LTV and bank rules also apply.
FAQ
What is DSR in Korea?
The share of your annual income that goes to all loan payments. Banks cap it at 40%.
What is the monthly payment on ₩300M over 30 years at 4%?
About ₩1.43M a month with equal installments; with equal principal it starts near ₩1.83M and falls to about ₩0.83M.
Worked example
Example: with ₩60 million income and ₩3 million a year of existing loan payments, a ₩300 million 30-year loan at 4% is tested at 7% (4% + 3%p stress). Stressed payments of about ₩23.95 million a year give a DSR of 44.9%, above the 40% bank limit; the estimated maximum loan is about ₩263 million.
Common mistakes
The stress rate is used only to set the limit; you pay interest at the actual rate.
Longer fixed-rate periods apply a smaller share of the stress rate.