Housing Stability Solidarity Criticizes Government’s Sudden Household Loan Regulations

The Housing Stability Solidarity (CEO Kim Na-rae) ‌pointed⁣ out on the 19th that the government’s⁤ sudden ⁣household ⁣loan ⁢regulations are worsening the confusion in the field.

The⁢ solidarity highlighted that the execution of the balance of the sales contract ⁢has become uncertain, resulting in⁣ deposit amounts in the hundreds of millions​ of won suddenly dropping at new ⁢occupancy⁢ sites. This has forced landlords to seek ​emergency funds, while tenants moving in after the‍ implementation of the ⁣jeonse loan ⁣are concerned about the ⁤’loanable amount reduction policy.’ As a result, tenants are demanding individual agreements stating, ‘Return‌ the deposit even if it is reduced,’ leading to confrontations with landlords.

The association emphasized⁢ that ⁤having a notice period before implementing a policy is essential to prevent market confusion. However, the government has implemented real estate policies without‍ notice, causing confusion among contracting parties.

The solidarity ⁣group urged policymakers to take emergency measures‌ to reduce the confusion on the ground, stating that the government’s household loan‌ regulations ‌have ​worsened the situation. They criticized policymakers for repeating heartless apologies ⁤instead of taking action.

According to the financial sector, domestic banks have been reducing the ⁤maturity ‍of housing mortgage⁣ loans, resulting in frequent cases where prospective borrowers have their ‍expected⁢ limits⁤ reduced. ‌The debt service ratio (DSR) regulation is closely related to ‌this issue, as it limits the ⁢ratio of⁢ principal and interest repayments ⁣to‍ annual⁢ income.

The sudden reduction of loan limits without notice has disrupted the real estate‍ plans of many citizens. Borrowers and ⁢citizens are being criticized for not having ‌time to prepare for the changes, highlighting the need for more​ transparent and considerate policy ⁣implementation.