Starting July 1, an additional charge of up to 1.5% will be applied to all household loans subject to the total debt repayment ratio (DSR).
Stress DSR refers to a system that imposes an additional charge on the borrower's loan interest rate. It reflects the possibility of increased repayment burden due to interest rate hikes when variable interest rates are used. It was introduced to prevent excessive borrowing beyond repayment capacity and to enhance the stability of the financial system.
Stress DSR was first introduced in February of last year in the banking sector's mortgage loans and was later included in the scope of application for credit loans in the banking sector and mortgage loans in the second financial sector in September. The stress DSR applicable from this day will apply to all financial sector household loans.
However, considering that the loan ratio for mortgage loans outside of the metropolitan area is decreasing, the current stress interest rate of 0.75% will be maintained until the end of this year. For group loans with recruitment notices issued until June 30, 2025, and ordinary mortgage loans for which real estate sale contracts have been signed, the previous '2-step stress DSR' will apply.
A government official noted, "With the implementation of the 3-step stress DSR, a household debt management system that can reflect the risk of future interest rate fluctuations has been established," adding, "It is expected that the borrower's principal and interest repayment burden will not change drastically with interest rate fluctuations and will be managed stably at an appropriate level."