Hana Bank Reduces Mortgage Loan Limits... Suspends MCI and MCG

Implementation of Household Loan Management Measures Starting September 3

Hana Bank will also join the banking sector's move to reduce the limits on mortgage loans.

According to the financial sector on the 28th, Hana Bank plans to implement household loan management measures starting September 3.

First, it will stop subscribing to mortgage insurance (MCI·MCG) for mortgage loans. MCI·MCG is insurance that is subscribed to simultaneously with a mortgage loan. Without this insurance, loans can only be made for the amount excluding small rental deposits, effectively reducing the loan limit.

When MCI·MCG subscription is restricted, the banking sector explains that the loan limits will be reduced by 55 million KRW in Seoul, 48 million KRW in Gyeonggi, 28 million KRW in other metropolitan cities, and 25 million KRW in other regions.

For multi-homeowners, the limit on mortgage loans for living stabilization funds will be capped at 100 million KRW per year. A Hana Bank official said, "Due to the continued increase in household loans, we decided to implement loan management measures," adding, "We will strive to stabilize the financial market while minimizing damage to actual demanders such as those without homes."