Hana Bank to Suspend New Mortgage Loans for Homeowners
and Conditional Jeonse Deposit Loans in Seoul Starting June 27
Hana Bank will also stop issuing new mortgage loans to homeowners. This move is seen as a response to the financial authorities' request for banks to voluntarily manage household debt, following signs of overheating in housing prices in Seoul and the metropolitan area.
According to the banking sector on the 20th, Hana Bank will halt the issuance of new 'mortgage loans for purchase purposes by homeowners' and 'conditional jeonse deposit loans' exclusively in the Seoul area starting from the 27th.
This means that new mortgage loans will no longer be issued to homeowners with one or more houses whose purchase properties are located in Seoul, excluding balance payment loans.
Additionally, the bank plans to stop issuing new conditional jeonse deposit loans with guarantee properties located in Seoul, including cases of prior lien cancellation and reduction, and conditional disposal by multi-homeowners.
A Hana Bank official explained, "This measure is a proactive and effective policy implementation to prevent gap investments and protect actual demanders amid the recent surge in housing prices and transaction volumes in the Seoul area."
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