KB Kookmin Bank to Restrict Mortgage Loans for Refinancing and Multi-Homeowners

KB Kookmin Bank will restrict mortgage loans for refinancing (switching) and multi-homeowners to control the pace of household loan growth.

According to KB Kookmin Bank on the 25th, starting from the 29th, mortgage loans will be restricted for those switching from other banks to KB Kookmin Bank. However, non-face-to-face applications through refinancing loan platforms will be allowed.

Additionally, purchase fund loans will be restricted for multi-homeowners (households owning two or more homes).

Furthermore, from the same day, mortgage loan interest rates will increase by 0.2 percentage points. KB Kookmin Bank had previously raised mortgage loan rates by 0.13 percentage points and 0.2 percentage points on the 3rd and 18th of this month, respectively. A KB Kookmin Bank official explained, "This is to strengthen financial support within the actual required funds range, focusing on real demand borrowers."

The banking sector has been adjusting additional interest rates and other measures to control the pace of household loan growth, but the effects have been limited. This is because the interest rate hike effect has been offset as market interest rates have fallen. The outstanding household loans of the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup Bank) stood at 712.1841 trillion won as of the 18th, an increase of 3.6118 trillion won compared to 708.5723 trillion won at the end of June.

Shinhan Bank also plans to raise mortgage and jeonse deposit loan interest rates by up to 0.3 percentage points starting from the 29th. This is the third increase this month. Mortgage loans will increase by 0.2 percentage points, refinancing (switching) mortgage loan services will increase by 0.2 to 0.3 percentage points, and jeonse loans will rise by 0.1 to 0.2 percentage points.

This trend is expected to continue for the time being. Woori Bank and NH Nonghyup Bank raised periodic mortgage loan rates by 0.2 percentage points from the 24th, and Hana Bank also raised mortgage loan rates by 0.2 percentage points earlier this month.