NH Nonghyup Bank to Restrict Metropolitan Area Mortgage Loans for Multiple Homeowners Starting June 6

Temporary Suspension of Mortgage Loans for Buyers Purchasing Two or More Homes

NH Nonghyup Bank is reducing the target and limit for mortgage loans to manage household loans.

According to the financial sector on the 3rd, Nonghyup Bank will temporarily suspend mortgage loans for the purpose of purchasing houses located in the Seoul metropolitan area for multi-homeowners owning two or more houses starting from the 6th. In addition, mortgage loans for living stabilization funds in the Seoul metropolitan area for these individuals will be limited to 100 million KRW.

Conditional jeonse deposit loans will also be temporarily suspended. Conditional jeonse loans are jeonse loans that come with the condition that the landlord's name changes. This is commonly used as one of the methods of gap investment because part of the purchase price can be covered by the jeonse deposit. Specifically, gap investors who buy houses with jeonse can match the tenant loan execution date and the balance payment date on the same day, using the jeonse deposit received that day to cover the remaining purchase price.

Nonghyup Bank has also strengthened mortgage loan limit management. The restriction on subscribing to the MCI mortgage insurance product has been expanded from face-to-face to non-face-to-face channels. For a similar product, MCG, handling has been temporarily suspended. However, loans from the Housing and Urban Fund (Didimdol) or group (balance) loans are excluded from this measure. MCI and MCG are insurance products subscribed to simultaneously with mortgage loans. Without this insurance, loans can only be received for the amount excluding small rental deposits, which can reduce the bank's loan amount limit.

Nonghyup Bank had already suspended face-to-face subscription for MCI since June 26. Face-to-face subscription for mortgage loans switching to other banks has also been restricted since June 5. Management of loan application limits at loan recruiting corporations has also started since last month.

According to the financial sector on the 3rd, NongHyup Bank will temporarily suspend mortgage loans for the purpose of purchasing houses located in the Seoul metropolitan area for multi-homeowners owning two or more houses starting from the 6th for two weeks.