Banks to Further Raise Loan Standards Despite Household Loan Slowdown in March

Hana Bank Reduces Preferential Rates for Multi-Child Families on Mortgage and Jeonse Loans
SC First Bank Suspends Mortgage Loans for Single-Homeowners in Seoul

Although the growth rate of household loans in March slightly slowed down, there are expectations that household loans could increase significantly in April, prompting banks to continue raising lending standards.

According to the financial sector on the 3rd, Hana Bank will adjust the preferential interest rates for multi-child families on mortgage loans and jeonse loans starting from the 10th, reducing the discount to 0.1 percentage points for families with two children and 0.2 percentage points for families with three or more children.

Initially, for housing-related loans, the interest rate was reduced by 0.2 percentage points for properties under 85㎡ with two minor children under 19 years old, and by 0.4 percentage points for families with three or more minor children regardless of property size. However, from the 10th, the rate discount will be halved.

A Hana Bank official stated, "Since 2023, we have expanded the discount rate for multi-child families, but we are reverting it to the previous level," adding, "The multi-child family discount program will continue."

SC First Bank also announced that starting from new applications on the same day, mortgage loans for home purchases in the Seoul area for one-homeowners will be suspended.

However, it remains possible for non-homeowners to receive loans for home purchase funds, and for homeowners to receive loans on the condition that they dispose of their existing home by the loan execution date.

Since last month, SC First Bank has completely blocked mortgage loans for home purchases and living stabilization funds for borrowers owning two or more homes.

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