Last month, as the rate of increase in household loans significantly slowed down, some banks began to ease restrictions on dwelling mortgage loans. Since an increase in loan demand has been anticipated since May, it is interpreted as a signal that they are gradually opening their business while keeping an eye on financial authorities. The problem is that each bank's criteria for handling dwelling mortgage loans varies, and the loan policy of the same bank can change within a month, causing confusion among consumers. Experts diagnose that under a management policy centered on total loan volume, banks' frequent changes in loan policies are inevitable.
According to the financial sector on the 14th, Shinhan Bank resumed providing housing purchase funds to homeowners in regions excluding four areas (Gangnam-gu, Seocho-gu, Songpa-gu, and Yongsan-gu) designated as land transaction permission zones in Seoul since the 11th. Previously, in September of last year, when household loan regulations were being tightened, Shinhan Bank established a policy to only provide housing purchase funds to non-homeowners. NH NongHyup Bank extended the maximum loan period for dwelling mortgages in non-capital areas from 30 years to 40 years starting the same day. NongHyup Bank had reduced the maximum loan period for dwelling mortgages in both capital and non-capital areas from 40 years to 30 years last November, but this was partially relaxed.
The easing of loan regulations by some banks is interpreted as a resumption of operations due to the reduction in the increase of household loans last month. Last month, household loans across the entire financial sector increased by 400 billion won compared to the previous month. This figure is significantly lower compared to the increase in February (4.2 trillion won). Even narrowing it down to bank dwelling mortgages, the loans that increased by 3.4 trillion won in February rose by only 2.2 trillion won in March, showing a slight stabilization. Consequently, banks are seeking to explore business opportunities in local areas while leaving pinpoint regulations on speculative risk areas in Seoul or those with relatively high housing prices unchanged.
As the loan policies become more segmented, the standards for loan processing vary between banks. Moreover, there are instances where a single bank's loan policy changes from moment to moment based on messages from financial authorities. In the case of Woori Bank, in February, it allowed homeowners to obtain dwelling mortgages for purchasing properties located in the capital area. However, after the Financial Services Commission urged the financial sector to manage household loans in March and mentioned 'the art of operation,' Woori Bank suspended homeowner dwelling mortgages again on the 28th of last month, limited to areas under the land transaction permission system.
As this trend of changing loan policies continues, reactions of confusion among consumers have emerged. In an online community related to financial technology, articles concerning household loans have been shared, and posts reflecting complaints such as 'the loan regulations lack consistency' and 'the information is jumbled' are easily noticeable. There are even opinions expressing distrust in government policies. Recently, a post in a real estate-related online community stated that 'the land transaction permission regulation is only temporary, as the government has identified it as a price hike area, so investments should be made now.'
Experts pointed out that banks' frequent changes in loan policies are a side effect of the household loan total volume-centered regulations. Professor Seo Ji-yong from Sangmyung University noted, 'The blanket total control by the financial authorities leads to causes such as rising loan interest rates or mismatches in loan supply and demand.' He added, 'If a system that compels banks to strengthen their capital every time they increase dwelling mortgages is introduced, banks will gradually adjust the supply of dwelling mortgages according to their capital capacity, and instances of sudden changes in loan policies are expected to decrease.'