KB Kookmin Bank to Reduce Mortgage and Jeonse Loan Limits and Raise Interest Rates Starting from the 16th

[Asia Economy Reporter Park Sun-mi] KB Kookmin Bank will reduce the limits on mortgage loans and jeonse deposit loans and raise interest rates starting from the 16th.

On the 15th, Kookmin Bank announced that in order to manage the total loan volume, it will increase the interest rates on mortgage loans and jeonse deposit loans by 0.15 percentage points each from the 16th. Accordingly, the COFIX-linked variable interest rate mortgage loans (loan period of 5 years or more, apartments, credit grade 1) will have their interest rates adjusted upward from the previous annual 2.80?4.30% to 2.95?4.45%. The interest rates on jeonse deposit loans will also rise from the current annual 2.79?3.99% to 2.94?4.14%.

Additionally, the operating standards for the Debt Service Ratio (DSR) will be strengthened. For mortgage loans, the limit will be adjusted from the existing 'within 100?120%' to 'within 70%', resulting in a reduced loan limit for borrowers. A borrower who could previously borrow up to 1.5 billion KRW under the 120% DSR standard will have a maximum limit of 800 million KRW when applying the 70% standard.

For jeonse deposit loans, the DSR standard for living stabilization loans will also be adjusted from the existing 'within 100%' to 'within 70%'. Furthermore, the maximum limit for unsecured loans will be restricted to within the borrower's annual income.

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