Chairman Kim Juhyun "Pursuing Allowance of Mortgage Loans for Multi-Homeowners and Rental Business Operators"

[Asia Economy Reporter Song Hwajeong] Kim Juhyun, Chairman of the Financial Services Commission, announced plans to allow mortgage loans for multi-homeowners and rental business operators.

On the 15th, Chairman Kim made this announcement at the 1st National Task Inspection Meeting presided over by President Yoon Seok-yeol at the Blue House State Guest House.

Chairman Kim stated, "A soft landing of the real estate market is important for financial stability," adding, "We are initially working to ease loan regulations, and recently announced a plan to relax the loan-to-value ratio (LTV) for speculative areas up to 50%."

He continued, "Currently, mortgage loans are not allowed for multi-homeowners or rental business operators, but considering the market situation, we plan to coordinate policy directions with the Ministry of Land, Infrastructure and Transport and the Ministry of Economy and Finance to enable them to use mortgage loans."

Additionally, Chairman Kim introduced the Bogeumjari Loan in relation to rising interest rates. He said, "I feel sorry and regretful that many people are struggling due to high interest rates," and explained, "There is a system by the Korea Housing Finance Corporation called the Bogeumjari Loan, which provides loans at fixed interest rates lower than market rates. We plan to temporarily raise the eligibility from the current housing price limit of 600 million won to 900 million won." He added, "Many people are using variable interest rates, and interest rates are likely to rise again by next spring, but they can switch to the fixed-rate Bogeumjari Loan, which is not subject to the Debt Service Ratio (DSR) regulation, making it very useful for those preparing to purchase a home."

[Image source=Yonhap News]

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