KakaoBank Offers Mortgage Loans Only to Non-Homeowners... Maximum Term Reduced to 30 Years

"Efforts to Supply Centered on Actual Demand"

KakaoBank announced on the 2nd that starting from the 3rd, it will restrict mortgage loan issuance through methods such as changing the loan period and limiting the loan amount.

First, the eligibility criteria for mortgage loans for home purchase funds have been changed from households with no home or one home based on combined household standards to no-home households only. The loan limit for living stabilization funds, which are not for returning rental deposits or repaying existing loans, is limited to 100 million KRW. However, as before, households with one home based on combined household standards can receive living stabilization fund loans.

The maximum mortgage loan period, currently 50 years (for those aged 34 or younger), will also be reduced to 30 years. Currently, the maturity ranges from 15 to 40 years, and depending on age, it could be extended up to 45 or 50 years. Going forward, it will change to 15 to 30 years in 5-year increments.

On the 26th of last month, KakaoBank also raised mortgage loan interest rates by 0.5 percentage points to minimize customer inconvenience caused by concentrated demand.

A KakaoBank official said, "We actively participate in household debt management and adjusted policies following the interest rate hike to minimize customer inconvenience caused by rapid demand increase. We will continue to strive to supply to actual demanders such as no-home households."

KakaoBank announced on the 2nd that starting from the 3rd, it will restrict mortgage loan issuance through methods such as changing the loan period and limiting the loan amount.