Government Eases Household Loan Regulations to Expand Borrowing Capacity for Genuine Buyers

The government will partially ease household loan management, focusing on genuine buyers. The annual household loan growth target will be raised from the existing 1.5% to around 3%, expanding the annual growth capacity from 30 trillion won to 60 trillion won. This measure targets genuine buyers struggling to secure funds due to loan volume regulations, with related loans to be managed separately.

Relocation loans for reconstruction and redevelopment, as well as mid-term and final payment loans for new apartments, will be managed separately from financial institutions' overall loan growth performance. Consequently, a significant portion of the expanded borrowing capacity will be allocated to collective loans. Additionally, a new guarantee product will be introduced to support additional loans for construction companies or unions.

The criteria for calculating relocation loan limits will be made more realistic, reflecting not only the current home price but also the estimated value of the new home after reconstruction. While the loan-to-value (LTV) ratio regulations will be maintained, the actual loan limits will increase due to a higher benchmark home value. Financial authorities explained that in specific complexes, loan limits could increase by over 100 million won.

The government will maintain the overall framework of loan regulations while simultaneously implementing measures to curb speculative demand. Guaranteed jeonse (lump-sum deposit) loans will be restricted for non-resident single-home owners with speculative intent. For cases of temporary income surges, such as bonuses, the debt service ratio (DSR) limit will be prevented from excessively increasing by applying the average income of the past 2-3 years.