The outcry of blocked mortgage loans

the remaining budget for the mortage loan of 4 trillion won is also blocked.

“Mortage loans for those who do not own residential housing or own 1 residential housing which is less than 900 million won are popular with actual demanders, however, due to the debt regulation that includes total household debt, it is suspended despite the possibility of commercial bank loans."

Out of the 8 trillion won budget, only 4 trillion won will be allocated

In the aftermath of the financial authorities' regulation on the total amount of household loans, it is becoming as difficult as passing “through the eye of the needle” for actual demanders to use not only commercial bank loans but also policy mortgage products offered by the government for the common people.

Qualified loan, the representative of policy mortgage loan products, is no longer available at commercial banks, although the Korea Housing Finance Corporation (HF) has 4 trillion won remained. Although the government has announced that this movement can prevent multi-housing owners from speculating on high-priced housing, the hardening of money is becoming a reality, blocking the funds for low and middle-priced housing for low-income households.

According to the financial industry on the 18th, commercial banks such as KB Kookmin, Hana, and Woori are no longer handling eligible loans at their branches due to the exhaustion of the loan limit received from the Korea Housing Finance Corporation(HF). Eligible loans are products introduced by the government to increase fixed-rate loans and can be received by people who do not own residential housing or own 1 residential housing who have promised to dispose of their existing home when they purchase a house with a market price of 900 million won or less. Although the interest rate is higher than other policy mortgage products, such as the Bogeumjari Loan, high loan limit up to 500 million won and there are no income requirements among the eligibility criteria, therefore, it is popular among people who do not own residential housing or own 1 residential housing. In the first half of this year, there were many cases where the limit for each bank ran out due to the influx of actual demanders.

Qualified loans were operated in such a way that commercial banks received a loan limit from the HF, sold loan products to customers, and sold the loan to the HF three months after. The HF raised funds by issuing securitization securities (MBS) as loans. As for the reason for not handling loans, the arguments of the bank and the HF are different. An official from a commercial bank said, "The HF gave the qualified loan limit on a quarterly basis, but recently it has changed to a monthly payment method.” He explained, “The limit received at the end of September has already been exhausted,” he said. "Recently, the HF has not taken over loans related to the qualified loans." He explained, "It is difficult to apply for an additional limit next month as related loans are accumulating". Another bank official said, "It is the HF product, but it is included when calculating the growth rate of household loans for each bank. It is difficult for banks to meet the guidelines of the financial authorities to sell qualified loans,” he said. “There is a possibility that the loan supply amount will be lower than expected as the number of the qualified loan applications from banks in the fourth quarter of this year has decreased compared to the previous year,” said an official from the HF. The HF argues that the HF cannot allocate it to the bank because the bank has not applied, while the bank cites it was because HF has reduced the limit. In this situation, it is pointed out that only actual demanders are in difficulties when loans being blocked.

Meanwhile, it was found that actual demanders in their 20s and 30s received a majority of the supply of qualified loans, a policy mortgage product of the HF, for nine months from the beginning of this year to last month. According to the 'Policy Mortgage Supply Performance by Borrower Age Group' received from the HF by Lee Jeong-moon, a member of the National Assembly's Political Affairs Committee, 48.7% of the 4.561 trillion won in the qualified loans was supplied to people in their 30s. For those in their 40s and 50s, 28.9% and 11.4%, respectively. Those in their 20s received 6.1%, and those in their 60s received 5.0%, respectively.

Translated by Law-Win Law Firm

Reference: Reporter 김혜순, MBN.