Household Loan Relief at the Start of the Year... Home Mortgage and Jeonse Loans Resume

Lending Limits Reset with the New Year
Major Commercial Banks Accept Applications Starting January 2

Banks have resumed household loan operations with the start of the new year. As the lending limits for household loans, which had been tightened by total volume regulations at the end of last year, have been reset, financial consumers are expected to breathe easier.

According to the financial sector on January 1, KB Kookmin Bank will resume refinancing of home mortgage, credit, and jeonse (long-term lease) loans from other banks starting January 2, after having suspended them since November 24 last year. Sales of some credit loan products (such as Star Credit Loan I and II) and enrollment in mortgage insurance (MCI and MCG) will also be allowed.

Shinhan Bank also plans to resume, from January 2, home mortgage and jeonse loans through loan consultants (brokers), as well as MCI, which had been suspended since August last year. However, MCI will only be available when the collateral is an apartment.

Hana Bank will also begin accepting applications for home mortgage loans, including those for living stabilization funds, starting on the same day. Non-face-to-face applications for jeonse loans are expected to be accepted within this month once the IT system development is completed.

Woori Bank will lift, as of January 2, the sales limit (1 billion won per month) on real estate loan products (home mortgage and jeonse loans) that had been set at each branch since October last year. Since the loan limit was only 1 billion won, branches had been virtually unable to handle home mortgage and jeonse loans, but loan operations are expected to return to normal after more than two months. Sales of some credit loan products via the Woori WON Banking app will also resume.

IBK Industrial Bank of Korea will also resume, from January 2, home mortgage and jeonse loans through loan brokers, and will fully allow jeonse loans with the condition of disposing of owned homes. Both face-to-face and non-face-to-face refinancing of jeonse loans from other banks will also be offered again.