On the 26th, it was learned that the financial authorities are reviewing a plan to exclude loans for young people and low-income real demanders from the total household loans management limits.
This appears to reflect growing public opinion, following a real estate policy forum presided over by President Lee Jae-myung, that "pinpoint support" is needed for young people and newlyweds.
The authorities set a 1.5% growth rate target for total household loans this year, while allowing exceptions when tallying financial companies' household loans management performance for items such as policy finance for low-income groups and private mid-rate loans. Young people and low-income real demanders could later be included in this exception Daesang.
The 1.5% target itself could change. To provide pinpoint support for real demanders, lending capacity must remain in the financial sector, but major commercial banks effectively exhausted their annual household loans capacity in the first half.
An industry official said, "Adjusting the target itself rather than increasing the number of exceptions could be more effective in managing loans while supporting real demanders at the same time."
President Lee also expressed his intention for pinpoint support at the real estate policy forum. At the forum, Lee said, "For those who really need it—young people, newlyweds, first-time homebuyers, and low-income housing—we should provide pinpoint support with concrete justification."
In addition, when a forum participant who won a pre-sale for an apartment in Suwon appealed that they could not obtain a final payment loan due to reduced bank loan limits ahead of move-in, Lee said, "When drawing the boundaries of (regulated Daesang), we should ensure the number of people who get hurt is minimized."
For move-in expense loans, a plan is being reviewed to change the collateral standard for the loan-to-value (LTV) ratio from the existing dwelling to the new dwelling. Currently, LTV 40% is applied based on the appraised value of the existing dwelling, but if it is changed to the new dwelling, the loan amount is expected to increase.