Shinhan Bank said on the 9th that starting on the 10th it will restrict enrollment in mortgage insurance (MCI/MCG) for mortgage loan applications to manage the total volume of household loans.
Restricting enrollment in insurance taken out with a mortgage loan has the effect of reducing the loan limit. Shinhan Bank decided to suspend loan applications through the broker channel from the previous day through the end of this month. Shinhan Bank's broker-channel loans reportedly exhausted a month's limit in seven days.
Other banks also moved to scale back mortgage loans. KB Kookmin Bank will reduce the mortgage loan limit in all regions from as much as 600 million won to 300 million won starting on the 10th. KB Kookmin Bank also restricted mortgage insurance enrollment on the 23rd of last month. NongHyup Bank has been sequentially restricting mortgage insurance enrollment since May 20.