Chairperson Lee Eog-weon said on the 24th that the "union member sale price" will serve as the basis in the revamp of how the loan-to-value (LTV) ratio is calculated for relocation loans secured by mortgage loan.
The Chairperson said this at the National Policy Committee on the afternoon of the 24th in response to a question from People Power Party lawmaker Kim Jae-seop requesting the disclosure of specific standards for calculating LTV on relocation loans. The Financial Services Commission on the 13th announced a comprehensive real estate finance policy and revamped the calculation method so that, when reviewing LTV for relocation loans, the larger of the pre-redevelopment asset appraisal value and the post-redevelopment asset appraisal value is used as the standard.
However, addressing lawmaker Kim's point that specific standards related to the "post-redevelopment asset appraisal value" are needed to avoid confusion in the field, the Chairperson said, "We will use the union member sale price. Once the management and disposal plan is approved, the union member sale price is set, and that becomes the collateral value."
Regarding the upward adjustment of the target growth rate for the total volume of household loans, the Chairperson said, "When we initially presented 1.5%, the nominal growth rate was 4.9%, but the economy has improved and it is now 13%," adding, "Accordingly, there is a rise in demand, and transactions of dwellings have also increased, so we took measures after examining actual demand. It does not mean we will approve all loans unconditionally."
Regarding the "Youth Future Bogeumjari Loan," which drew criticism mainly from the opposition that it would make young people live in non-apartments, the Chairperson said, "Using this product does not eliminate first-time homebuyer benefits," adding, "We provided a new additional option."