IBK Industrial Bank also raises the bar for mortgage loans to single-homeowners

Suspension of Mortgage Loans for Home Purchase Purpose from October
Exceptions Applied if New Genuine Demand Conditions Are Met
Dedicated Team Established on the 24th

As commercial banks continue to suspend mortgage loan applications through loan agents in an effort to manage the total volume of household loans, IBK Industrial Bank, a policy financial institution, is also raising the bar for mortgage loans for single-homeowners.

According to the financial sector on the 25th, IBK Industrial Bank has decided to stop mortgage loans for the purpose of home purchase for single-homeowners starting from the 2nd of next month. However, mortgage loans will still be available if the borrower meets the conditions for genuine housing demand.

The newly established genuine demand conditions by IBK Industrial Bank include switching homes for single-homeowners, those planning to get married within six months, and those who own a home through inheritance within two years. Considering that mortgage loans were previously provided to single-homeowners within the loan-to-value ratio, this significantly raises the lending threshold.

Since genuine demand conditions have been set, a separate team has been established to assess these cases. On the 24th, IBK Industrial Bank formed a dedicated team consisting of six members, including two team leaders and four team members. This team will discuss whether to approve individual loan applications at branch offices.

Additionally, the threshold for jeonse loans has also been raised. IBK Industrial Bank has stopped handling jeonse loans under the condition of ownership transfer by the lessor, adding that loans will only be available if the full payment for newly supplied housing units has been completed.

An IBK Industrial Bank official explained, "We plan to handle loans according to the new standards starting next month," adding, "This is a measure to comply with the government's household loan management policy."