Hana Bank Temporarily Restricts Mortgage Insurance Subscriptions

Hana Bank will suspend subscriptions for mortgage insurance (MCI and MCG) starting from November 17. Hana Bank announced, "We will stop accepting new applications for home mortgage loans secured by Seoul Guarantee Insurance MCI and Korea Housing Finance Corporation MCG through our branches." However, non-face-to-face mortgage loans will continue to be processed as usual.

MCI and MCG are types of insurance that are purchased simultaneously with a home mortgage loan. Without this insurance, borrowers can only receive a loan amount excluding the small deposit for tenants. As a result, this is expected to effectively reduce the maximum loan limit.

If customers are unable to subscribe to MCI or MCG, the maximum loan limit will be reduced by 55 million won in Seoul, 48 million won in Gyeonggi Province, 28 million won in other metropolitan cities, and 25 million won in other regions, respectively.

Meanwhile, banks are working to manage the total volume of household loans toward the end of the year. KB Kookmin Bank suspended household loans through loan brokers as of November 4 for loans to be executed by December, and on November 12, temporarily restricted new subscriptions for mortgage insurance while also reducing the maximum loan amount per person. Shinhan Bank and NongHyup Bank have also stopped processing loans through loan brokers.