From the 1st of next month, ‘loans of more than 1.5 billion and 50% LTV consolidation’ will be implemented

An apartment complex seen from Namsan Mountain in Seoul. news

From the 1st of next month, ‘loans of more than 1.5 billion and 50% LTV consolidation’ will be implemented

The Financial Services Commission announces a review of banking supervision regulations

From the 1st of the following month, the LTV for non-homeowners in regulated areas will be applied at 50%, and apartment mortgage loans exceeding 1.5 billion won will be allowed in speculation and overheating areas.

The Financial Services Commission announced on the 27th that it has recently published the amended Banking Supervision Regulations, which include the policy of relaxing the loan regulations, and which will come into force on the 1st of next month. Previously, at the 11th Economic Crisis and People’s Livelihood Meeting on October 27, the government announced the real estate deregulation plan, and at the 3rd Real Estate Ministers’ Meeting on the 10th, the implementation date was moved forward from the beginning of next year to the end the year..

According to this relaxation of loan regulations, the LTV regulation for non-home owners (including single home owners with disposal conditions), which is currently differentially applied at 20-50% depending on house prices in regulated areas, combined to 50%. Currently, 70% LTV is applied to homeless people in non-regulating areas, but 40% LTV is applied to houses worth 900 million won or less, and 20% LTV is apply to houses worth more than 900 million won, even for houses that are not won. homeowners in overheated speculation areas.

The LTV of the regions subject to adjustment is differentiated into 50% of houses with a price of 900 million won or less and 30% of houses with a price of 900 million or more won. With this deregulation, the regulation that prohibits new home mortgage loans for apartments that exceed 1.5 billion won in overheated speculation areas will also be lifted on the 1st of next month. An LTV of 50% is applied as a lump sum. However, the regulation that prohibits new home loans for multi-homers within the regulated area remains in place.

The revised supervisory regulations also include an increase in the ceiling of housing loans for ordinary people and genuine consumers from 400 million won to 600 million won. In the case of ordinary people and genuine consumers, even within the regulated area, when taking a home loan for the purpose of buying a home, the LTV (maximum 70%) can be applied within the limit of 600 million won by 20% . points.

The extent of the increase in the loan limit following the relaxation of the LTV regulation is expected to vary depending on the level of income. In the banking sector, with this deregulation measure, the loan limit that a homeless person with an annual salary of 70 million can obtain when buying an apartment worth 1.4 billion earned in a regulated area is currently around 460 million (interest rate 4.8%) , 40 year principal and interest divided equally) Based on repayment), it is expected to increase by about 37 million won to 497 million won. However, if the annual salary is 50 million won, the total debt repayment ratio (DSR) regulation (40%) is applied, so the limit does not increase even with this LTV deregulation.

Reporter Noh Seong-yeol

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