Movements to ease lending regulations are also emerging among internet-only banks. Kakao Bank and K Bank were the first to expand the limits of household stabilization fund mortgage loans.
Kakao Bank noted on the 7th that it will remove the limits on household stabilization fund mortgage loans for other purposes (excluding rental deposit returns and loan repayments) starting from the 8th.
Kakao Bank had limited the household stabilization fund mortgage loan limit to 100 million won in September 2024 for household loan management, and it has now lifted that restriction.
At that time, Kakao Bank reduced the mortgage loan period from a maximum of 50 years to 30 years and limited the eligibility for mortgage loans for dwelling purchases to 'household members without homes.'
In November 2024, Kakao Bank expanded the mortgage loan period to a maximum of 40 years, but the eligibility condition for mortgage loans for dwelling purchases remains limited to household members without homes.
K Bank also expanded the limits for apartment-backed loans for household stabilization funds from the existing 100 million won to 1 billion won starting from today. The 'repayment period,' during which only interest is paid without repaying the principal, was eliminated but has been extended back to a maximum of 12 months.
According to K Bank, all measures implemented in September 2024 for household loan management have been restored to their original state.
Additionally, to mark the one-year anniversary of the launch of the mortgage loan switching program in January 2024, it plans to expand the previously restricted lending capacity. As of today, K Bank's apartment-backed loan interest rate is the lowest at 3.75% per year.
A K Bank representative stated, 'There have been instances of lending 'open runs' due to a lack of lending capacity, but this will be considerably eased in the new year.'