Financial authorities have decided to exclude down payment loans from the household loan total volume regulation. The financial authorities anticipate that demand for down payment loans amounting to approximately 70,000 households and 26 trillion won will arise in the second half of the year and have begun preparing follow-up measures. The financial authorities are also considering excluding moving expenses and interim installment loans from the total volume regulation in addition to down payment loans.
According to the financial sector on the 28th, the Financial Services Commission held a meeting this afternoon chaired by Secretary-General Shin Jin-chang with vice presidents in charge of lending from KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH NongHyup Bank to discuss measures for responding to collective loans.
It is reported that during the meeting, opinions were raised that for construction sites where move-in was scheduled and down payment loans were planned prior to the strengthening of loan regulations, these down payment loans should be excluded from each bank's household loan total volume management performance.
The first target of application is Maegyo Station Palusid in Suwon, Gyeonggi Province, which is set for move-in this August. The five major banks decided to supply down payment loans totaling 50 billion won—10 billion won per bank—for residents scheduled to move in on that day.
Maegyo Station Palusid has recently become a representative construction site hit directly by the strengthening of loan regulations. As banks have successively reduced mortgage lending to meet household loan total volume limits, prospective residents have found themselves unable to secure down payment loans.
In fact, at the "National Real Estate Policy Grand Debate" held on the 23rd, a citizen who introduced himself as a prospective resident of Maegyo Station Palusid directly appealed to President Lee Jae-myung regarding the down payment loan issue. He stated, "I received an allocation two years ago for actual residence purposes, but due to household loan total volume regulations per bank, I cannot obtain a down payment loan," adding, "Prospective residents scheduled to move in this year are facing significant difficulties." At that time, President Lee also remarked, "If policies change and this situation arises, it could lead to truly absurd events. There is a problem," urging the preparation of countermeasures.
The financial authorities appear set to apply this measure not only to specific construction sites but also to other residential complexes allocated prior to the strengthening of regulations. It is understood that the financial authorities estimate demand for down payment loans amounting to approximately 70,000 households and 26 trillion won will arise in complexes scheduled for move-in during the second half of the year. However, since this figure includes interim installment loans, further analysis is needed to determine the actual scale of new credit expansion.
The financial authorities plan to hold another meeting with the banking sector within one to two weeks to further review down payment loan demand and support measures for each construction site. It is understood that banks have been requested to secure necessary funding in advance to respond to future collective loan demands.
With this decision, concerns about delays in down payment loans for complexes scheduled for move-in in the second half of the year are expected to be significantly alleviated. However, the actual target scope, the extent of total volume exclusions, and support scales per construction site are expected to be finalized through follow-up negotiations.
In addition to down payment loans, the financial authorities are also considering applying total volume regulation exemptions to moving expense loans and interim installment loans, which are essential for expanding housing supply. However, no specific direction was confirmed during today's meeting regarding moving expenses and interim installment loans.
in FINANCE
