To be frank, I feel the same way. It hasn’t been long since the government announced regulations for multi-home rental business owners, and now they’re preparing additional regulations, so I wonder what’s going on. This time, they’re even targeting jeonse loans for non-resident single-home owners and small loans, so I really need to look into it carefully.

DSR, RWA, What Do These Even Mean?

If I had to pick the core of the newly strengthened loan management measures, there are three main points. Personally, these terms feel very difficult to understand.

• First, the expansion of DSR (Debt Service Ratio) application. Some jeonse loans that were previously exempt from DSR regulations will now be included. Even for first-time homebuyers, if they take out a high-value jeonse loan, the interest repayment will be reflected in DSR, and there’s even a plan being considered to include small loans of 100 million won or less.
• Second is the increase in Housing Mortgage RWA (Risk-Weighted Assets). This means raising the capital ratio that banks must accumulate when issuing loans, thereby reducing the banks’ own loan supply. Last year, the RWA floor already increased from 15% to 20%, and a plan to raise it further to 25% is being strongly discussed.
• Finally, strengthening loan regulations for non-resident single-home owners. Methods to restrict public guarantees are being discussed to prevent speculative jeonse loans that are not for actual residency.

Honestly, just hearing these terms gives me a headache, but ultimately, it means it will be harder to get a loan. Especially since high-value home equity loans may incur additional capital burdens, it seems we really need to be cautious.

Strengthened Loan Regulations, Who’s Next?

So, who will be most affected by these strengthened loan regulations? I think a few groups, in particular, need to be more careful.

• First, non-resident single-home owners. While unavoidable reasons like children’s education or job relocation might be recognized as exceptions, those who intend to use jeonse loans for investment purposes rather than actual residency will inevitably face difficulties.
• And first-time homebuyers who plan to take out high-value jeonse loans should keep in mind that their loan limits may decrease due to the expanded DSR application.
• Lastly, since there’s a possibility that even small loans of 100 million won or less will be included in the regulations, those who were considering ‘split loans’ through small loans will now find it difficult.

Honestly, I understand the government’s intention to curb the increase in household debt and block speculative demand, but I can’t help but worry that the burden will be passed on to actual demanders.

Why Are Loan Hurdles Getting So High?

There must be a clear reason why the government is raising loan hurdles so much. This is said to be a follow-up measure to the previous announcement of loan regulations for multi-home rental business owners.

Ultimately, it seems to be an intention to curb the increase in household debt and definitively block speculative demand in the real estate market. By including jeonse loans and policy loans, which were previously blind spots in DSR regulations, it seems they plan to place virtually all household loans under the same management framework. The increase in RWA, which reduces banks’ own lending capacity, is along the same lines.

Financial authorities plan to activate a working group starting next week to discuss specific regulatory measures, so we need to pay closer attention to future announcements.

It seems that getting a loan will be more difficult for the time being. Personally, if you have loan plans, it would be wise to check these new regulations carefully and prepare in advance.

It’s a difficult time for everyone, but I hope we can all navigate it wisely!

게시물 Loan Regulations: The Shocking Truths No One Knew! Check Now!이 솜삽 블로그에 처음 등장했습니다.