Finda "H1 Mortgage Loan Applications Doubled"

Cumulative Mortgage Loan Applications Total 20 Trillion Won Over 2 Years

Loan brokerage fintech company Finda announced on the 12th that the amount of mortgage loan applications on its AI-based loan comparison platform doubled in the first half of this year compared to the second half of last year.

The mortgage loan application amount in the second half of last year was KRW 4.3563 trillion, but it soared 192% to KRW 8.3929 trillion in the first half of this year. Growing an average of 53% every half year, the cumulative mortgage loan application amount has reached KRW 20 trillion so far.

According to Finda, among mortgage loan applicants who executed loans, 59% were thin filers (those with insufficient credit history) with credit scores between 600 and 799. This was followed by those with scores in the 800s (15%), 900s (14%), 500s (6%), 1000 (3%), and 400s (2%). Their occupations were mostly wage earners (78%), with individual business owners accounting for 10%. Doctors (5%), other income earners (4%), freelancers (3%), and public officials (1%) followed.

The average interest rates by product were ▲new mortgage loans 3.9%, ▲refinancing loans 3.9%, and ▲subordinate mortgage loans 10.3%. The average loan amounts by product were ▲new mortgage loans KRW 148.03 million, ▲refinancing loans KRW 204.89 million, and ▲subordinate mortgage loans KRW 82.82 million.

By region, the proportion of mortgage loans executed in the metropolitan area (Seoul, Gyeonggi, Incheon) was 76% in total. It was recorded in the order of Gyeonggi Province (52%), Seoul (16%), Incheon (8%), Busan (6%), Gwangju (4%), Chungcheong (3%), with Daegu, Daejeon, and Gyeongsang regions each accounting for 2%.

Since March 2022, Finda has strengthened its mortgage loan lineup over two years, starting with the supply of subordinate mortgage loan products from secondary financial institutions, followed by the listing of new mortgage loan products from primary financial institutions in November last year, and the launch of refinancing loan services in January. Currently, Finda allows comparison and application for 21 mortgage loan products from 14 financial institutions.

Lee Hyemin, co-CEO of Finda, said, "Due to factors such as the second-stage Debt Service Ratio (DSR), loan interest rates are rising and loan limits are shrinking, making it increasingly difficult for actual owners to obtain loans. We plan to develop new products and link various products to offer customers more favorable conditions."

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