Mortgage affordability is not only an income question. In the Korean housing market, a buyer can have enough DSR room and still be limited by cash, LTV, and transaction costs.
This article compares KRW 100 million, KRW 200 million, and KRW 300 million of cash using the same DSR/LTV simulation logic used by the DSR/LTV Calculator. Enter your own cash, reserve cash, LTV, DSR, and target apartment price there before using these numbers as a reference.
Once you have a safer search range, open the Real Estate Dashboard and compare it with actual Seoul, Gyeonggi, and Incheon transaction prices. The figures below are examples, not policy automation or lender approval.
Quick Summary
- Passing DSR does not mean the apartment is affordable if cash or LTV fails.
- With 70% LTV and 5% transaction costs, a buyer needs roughly 35% of the home price in cash.
- In this example, KRW 100M of cash supports about KRW 286M of purchase price.
- KRW 200M of cash supports about KRW 571M, but a KRW 600M target is still tight.
- KRW 300M of cash shifts the bottleneck from cash/LTV to DSR under the same income assumption.
- The safer search range is 80-90% of the calculated maximum purchase price.
Assumptions
| Item | Input |
|---|---|
| Annual income | KRW 60M |
| Existing monthly debt | KRW 0 |
| Interest rate / term | 4.0% / 30 years |
| DSR / LTV entered by user | 40% / 70% |
| Extra transaction cost rate | 5% |
| Repayment method | Equal monthly principal-and-interest payment |
| Reserve cash | KRW 0 |
FinMap does not automatically apply Korean mortgage policy changes. The calculator uses the DSR and LTV values you enter and estimates an equal-payment loan. Actual lender review can differ because of credit profile, income recognition, collateral valuation, local rules, and bank-specific policy.
Purchase Budget by Cash on Hand
| Cash on hand | Cash/LTV price limit | DSR price limit | Final affordable price | Bottleneck |
|---|---|---|---|---|
| KRW 100M | KRW 285.71M | KRW 598.46M | KRW 285.71M | Cash/LTV |
| KRW 200M | KRW 571.43M | KRW 598.46M | KRW 571.43M | Cash/LTV |
| KRW 300M | KRW 857.14M | KRW 598.46M | KRW 598.46M | DSR |
The first jump, from KRW 100M to KRW 200M of cash, increases the estimated purchase budget sharply. But the next KRW 100M does not keep adding budget at the same pace, because DSR becomes the binding limit.
Safer Search Range
The calculator's safer search range is 80-90% of the final affordable price. It is meant to give room for price negotiation, fees, maintenance costs, taxes, and underwriting differences.
| Cash on hand | Final affordable price | Safer search range |
|---|---|---|
| KRW 100M | KRW 285.71M | KRW 228.57M - KRW 257.14M |
| KRW 200M | KRW 571.43M | KRW 457.14M - KRW 514.29M |
| KRW 300M | KRW 598.46M | KRW 478.77M - KRW 538.61M |
After calculating your own range in the DSR/LTV Calculator, use the Real Estate Dashboard to check whether recent transactions actually cluster inside that range.
Example: Testing a KRW 600M Target Apartment
Assume the target apartment price is KRW 600M, LTV is 70%, and extra costs are 5%.
| Cash on hand | Required loan | Max loan by LTV | Required cash | Cash surplus or gap | Result |
|---|---|---|---|---|---|
| KRW 100M | KRW 530M | KRW 420M | KRW 210M | -KRW 110M | Not viable |
| KRW 200M | KRW 430M | KRW 420M | KRW 210M | -KRW 10M | Near limit |
| KRW 300M | KRW 330M | KRW 420M | KRW 210M | +KRW 90M | Passes input checks |
KRW 200M looks close, but it is still short under the LTV/cash check. A small change in price, reserve cash, LTV input, or transaction cost rate can move the result from "near limit" to "not viable."
What If You Keep Reserve Cash?
Leaving emergency cash outside the purchase budget reduces the cash available to the calculator. This is usually more realistic than putting every won into the home purchase.
| Gross cash | Reserve cash | Cash used in calculation | Cash/LTV price limit |
|---|---|---|---|
| KRW 200M | KRW 0 | KRW 200M | KRW 571.43M |
| KRW 200M | KRW 30M | KRW 170M | KRW 485.71M |
| KRW 300M | KRW 50M | KRW 250M | KRW 714.29M |
Use the reserve cash field in the DSR/LTV Calculator when you want the result to reflect liquidity after closing.
Easy Mistake
"If my income passes DSR, the rest should be fine."
Not necessarily. DSR tests repayment capacity. LTV tests the loan-to-home-price ratio. The cash check tests whether you can cover down payment and transaction costs. A Korean apartment purchase needs all three to work together.
Practical Checklist
- Enter annual income, current debt, DSR, and LTV manually.
- Enter cash on hand after subtracting emergency reserve.
- Add a transaction cost rate instead of assuming the purchase price is the only cost.
- Test one target apartment price, then lower it until the result is no longer tight.
- Use the safer search range in the Real Estate Dashboard, not only the absolute maximum price.
- Treat the result as a pre-check, not as a lending promise or investment recommendation.
Related Reading
- How to use the apartment dashboard for a home-buying goal
- Mortgage risk checklist before buying
- Passing DSR but still blocked by LTV and cash
FAQ
Is KRW 100M enough cash to buy an apartment in Korea?
It depends on the target price, LTV input, transaction costs, income, and existing debt. In this example, KRW 100M supports about KRW 286M of purchase price under 70% LTV and 5% extra costs.
Why does cash become a bottleneck even when DSR passes?
Because the buyer still needs to cover the part not financed by the mortgage plus transaction costs. If LTV is 70% and costs are 5%, the cash need is about 35% of the purchase price.
Does the FinMap calculator apply current Korean mortgage policy automatically?
No. It uses the DSR and LTV values you enter. Check official rules, lender guidance, and your own documents separately.
Why use the safer search range instead of the maximum purchase price?
The maximum is a boundary under the inputs. The safer search range leaves room for fees, review differences, price changes, and life after the purchase.
Where should I check real apartment prices after calculating?
Use the Real Estate Dashboard to compare Seoul, Gyeonggi, and Incheon transaction prices against your safer search range.
Bottom Line
Run your own numbers in the DSR/LTV Calculator, then compare the safer search range in the Real Estate Dashboard. The useful workflow is not "Can I borrow the maximum?", but "Which price band still leaves room after debt, cash, LTV, costs, and real market prices?"