Five major banks have decided to supply a total of 500 billion won in balance loans for the 'Palusid' project at Mae-gyo Station in Suwon, Gyeonggi Province. Financial authorities plan to exclude balance loans for complexes scheduled to be occupied this year, including Palusid, from each bank's household loan total management.
According to the financial sector on the 28th, KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH NongHyup Bank have agreed to handle balance loans totaling 500 billion won, with each bank providing 100 billion won, for prospective residents of the Palusid project at Mae-gyo Station. Financial authorities do not plan to reflect these loans in the performance metrics of household loan total management for each bank. This follows a discussion held on the afternoon of that day under the chairmanship of Shin Jin-chang, Secretary-General of the Financial Services Commission, between the five major banks' vice presidents in charge of lending and measures related to group loans.
Palusid at Mae-gyo Station, scheduled for occupancy this August, is a project where concerns were raised that prospective residents might not be able to secure balance loans due to the impact of tightened lending regulations. This occurred because banks have successively reduced their handling of mortgage loans to meet household loan total limits.
Accordingly, at the 'National Real Estate Policy Grand Debate' held on the 23rd, a woman who identified herself as a prospective resident of Palusid at Mae-gyo Station in Suwon raised the issue of balance loans with President Lee Jae-myung. The woman stated, "I received an allocation two years ago for actual residence, but due to bank-specific loan limits resulting from recent household loan total regulations, I am now facing a situation where I cannot receive any balance loans at all," and added, "Many prospective residents scheduled to move in this year are experiencing significant difficulties."
It is interpreted that financial authorities took into account that they could not have anticipated the current lending regulations at the time of the 2023 allocation. Since the end of 2023, when contracts were signed and reservation fees and interim payments were made, prospective residents found themselves unable to secure loans as banks raised lending thresholds due to strengthened household loan regulations this year.
Financial authorities are expected to take similar measures for complexes scheduled for occupancy in the future. Following concerns raised at the real estate grand debate regarding relocation loans and balance loans, financial authorities are considering applying total management exceptions to group loans directly linked to housing supply.
in FINANCE
