From Tomorrow, If Buying a House with a Loan in Regulated Areas, Must Move In Within 6 Months

Archive photo / Photo by Mun Honam munonam@

[Asia Economy Reporter Kim Hyo-jin] Starting next month, mortgage loans for all housing sales and rental business operators in all regions will be prohibited. Additionally, if purchasing a house with a mortgage loan in regulated areas, the buyer must move into the new house within six months.

The Financial Services Commission and the Financial Supervisory Service announced on the 30th that these financial sector measures will be implemented from the 1st of next month in accordance with the 'June 17 Real Estate Measures.'

Until now, housing sales and rental business operators in regulated areas were subject to a loan-to-value (LTV) ratio restriction of 20-50%, while operators in non-regulated areas were not subject to LTV restrictions.

However, from the 1st of next month, mortgage loans for housing sales and rental business operators, excluding non-profit and public interest corporations, will be prohibited in all regions, including both regulated and non-regulated areas.

Non-homeowners who receive mortgage loans to purchase housing in regulated areas such as speculative areas, speculative overheating districts, and adjustment target areas must move in within six months.

One-homeowners must dispose of their existing home and move into the new home within six months.

This measure will apply to new loan applications submitted after the 1st of next month.

Borrowers who have signed a housing sales contract and paid the deposit by this date, borrowers who have completed loan application registration through the financial institution's system, and borrowers who have received loan maturity extension notices from financial institutions may still be subject to the previous regulations.

For non-homeowners, the previous regulation required moving in within one year when purchasing a house priced at 900 million KRW.

One-homeowners could obtain mortgage loans on the condition that they dispose of their existing home within one year if they purchased an additional house in speculative areas or speculative overheating districts.

This content was produced with the assistance of AI translation services.