major changes have been made to the loan evaluation criteria
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, ‘Starting from the 29th, KB Kookmin Bank will uniformly adjust the repayment period of home mortgage loans, which have been available for up to 50 years for those under 34 years of age and 40 years for others, to 30 years. Furthermore, they have decided to no longer offer interest-only payment options and will discontinue operating interest-only repayment housing mortgage loans. This change in direction, from raising interest rates as a measure to suppress loan demand to strengthening evaluations in response to strong government criticism, reflects a shift in strategy by the banking sector.’,
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, ‘According to KB Kookmin Bank on the 26th, the evaluation standards for housing mortgage loans will become more stringent starting from the 29th. The most notable change is the reduction of the maximum loan periods for home mortgages in the metropolitan area. Previously, individuals under 34 years of age could have a repayment period of up to 50 years, while others could extend up to 40 years through refinancing. However, as of now, this period will be reduced to 30 years.’,
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, ‘They have also decided to discontinue the operation of interest-only repayment housing mortgages. Interest-only repayment loans allow borrowers to make interest payments for a certain period before repaying both the principal and interest later. However, it was decided to operate only non-interest-only repayment loans as there were concerns about speculative demand in this area.’,
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, ‘Additionally, the limit for living stability fund-purpose housing loans will be capped at 100 million KRW, and the application of new housing mortgage insurance (MCI·MCG) will be restricted, resulting in a reduction of loan limits based on regions. In Seoul, the limit is expected to decrease to around 55 million KRW, while in other regions, it will be reduced to 25 million KRW.’,
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, ‘Furthermore, collateral loans for vacant land without buildings will be prohibited, and the refinancing of non-bank housing rental deposits will be restricted. The limit for “account automatic loans” also known as overdraft facilities, will be reduced from 100 million to 150 million KRW to 50 million KRW.’,
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