Mortgage loans at the five major banks have risen by their largest margin in 11 months. Within the banking sector, there are expectations that household loan growth could accelerate as total loan caps are relaxed only for final payments and large-scale apartment complexes begin moving in starting this August.
According to financial industry data released on the 31st, as of the end of last month, mortgage loan balances at KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH NongHyup Bank increased by 2.2831 trillion won compared to the previous month-end. This marks the largest increase since August 2025 (3.7012 trillion won), occurring after an 11-month gap.
Total household loan balances rose by 3.8261 trillion won this month, a slight decrease from last month's increase of 4.1378 trillion won. Credit loans also increased by 1.3780 trillion won, showing a smaller rise than the previous month's 2.1550 trillion won, but continuing an upward trend for three consecutive months.
The surge in mortgage loans is attributed to the execution of numerous apartment-related loans tied to transactions made before the expiration of the temporary exemption on higher capital gains taxes for multi-homeowners in May. According to Korea Land & Housing Corporation data, apartment sales in Seoul reached 12,150 units in May, a significant jump compared to the 7,000–9,000 unit range seen from January to April. However, transaction volumes have since declined back to around 8,000 units last month.
The banking sector is also paying close attention to the possibility that household loan growth in August could exceed July's figures. According to Real Estate 114, planned apartment deliveries nationwide in August total 19,272 households, surpassing the first-half monthly average of 16,082 households.
In particular, financial authorities have decided to exclude final-payment loans for complexes sold prior to the implementation of stricter household debt regulations under the the 27th measures from the total loan cap scope for banks. This move raises concerns that mortgage loans could rise further, especially around large-scale residential complexes.
A banking industry official stated, "As final-payment loans for homes traded in April and May continue to be executed, funding demand is emerging, and the upward trend is expected to persist through August and September." The official added, "Additionally, approximately 50 billion won in final-payment loans are scheduled for Palisade in Seoul alone this August, and with more large-scale complexes planned for move-in in the second half compared to the first half, the increase could be even larger."
Banks' capacity to manage household loans under the financial authorities' total loan caps has already reached its limit. As of the 23rd, excluding policy-based loans, the five major banks' household loan balances stood at 649.5398 trillion won, an increase of 4.5637 trillion won from year-end last year. This exceeds the annual growth target submitted by the banks to financial authorities (4.33 trillion won) by 233.7 billion won. By month-end, the over-target amount is likely to have widened further.
To manage total loan volumes, banks are raising lending thresholds even higher. KB Kookmin Bank reduced its maximum mortgage loan limit to 300 million won starting from the 10th and, as of today, raised interest rates on mortgage loans, rental loans, and credit loans by up to 0.53 percentage points (P).
As a result, five-year fixed-rate mortgage loan interest rates at the five major banks rose from 4.26–7.10% annually at the end of May to 4.37–7.37% by the end of June, and further to 4.74–7.50% on July 30 (today). Six-month variable-rate loans also increased from 3.63–6.03% annually during the same period to 4.07–6.37%, then to 4.13–6.38%. With rising market rates and strengthened total loan management, the upward trend in lending rates is expected to continue for the foreseeable future.
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