KB Kookmin Bank Follows Hana in Restricting New Mortgage Loan Applications

Following Hana Bank, KB Kookmin Bank has also halted new applications for mortgage loans.

According to KB Kookmin Bank on November 21, starting from November 24, new applications for mortgage loans intended for home purchases scheduled to be executed this year will be restricted at in-person branches. For non-face-to-face channels, the restriction will take effect from November 22.

Refinancing loans from other banks to KB Kookmin Bank-including mortgages, jeonse loans, and unsecured loans-as well as the non-face-to-face unsecured loan products 'KB Star Credit Loan I and II,' will also be suspended from November 22.

Previously, KB Kookmin Bank had already suspended loan applications through brokers last month, and since November 11, it has also temporarily restricted enrollment in mortgage insurance (MCI and MCG). MCI and MCG are types of insurance taken out simultaneously with a mortgage loan; without this insurance, borrowers can only receive a loan amount excluding the small deposit protection. As a result, this measure is expected to effectively reduce the loan limit.

As the end of the year approaches and banks begin to manage the total volume of household loans, concerns over a 'loan cliff' are becoming a reality. Previously, Hana Bank also announced that it would restrict new applications for mortgages and jeonse loans to be executed this year from November 25 until the end of the year. Shinhan Bank and NH Nonghyup Bank have also suspended broker-mediated loan applications until the end of the year.

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