Rising Barriers for '50-Year Mortgage Loans'... Kakao Bank Also Imposes Age Limit of 34 Years

Financial authorities have identified 50-year mortgage loans as the main culprit behind household debt, prompting banks to either stop selling these products or implement age restrictions.

According to KakaoBank on the 24th, an age limit of '34 years old or younger' will be imposed on 50-year mortgage loan products. Age conditions will be newly established based on the loan maturity and will take effect from the 25th.

For 50-year loans, only those aged 34 or younger can apply; for 45-year loans, only those aged 35 to 39 can choose; and for 40-year loans, only those aged 40 or older are eligible. Loans with maturities of 15, 25, and 35 years can be selected by anyone aged 19 or older.

Earlier, the Financial Services Commission targeted 50-year mortgage loans as a cause of rising household debt and announced plans to consider age restrictions. The Financial Supervisory Service also stated it would conduct a review of household loans, including the Debt Service Ratio (DSR) calculation system.

As a result, banks are rushing to either halt the sale of mortgage loans or set age limits. NH Nonghyup Bank and BNK Gyeongnam Bank have stopped selling 50-year mortgage loans, while SH Suhyup Bank and Daegu Bank have decided to impose an age limit of '34 years old or younger.' Among the five major banks, Shinhan Bank has set an age restriction of '34 years old or younger' for mortgage loans with maturities exceeding 40 years.

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