Real Estate Loan Market Still Restricted After August 13 Measures

In particular, group loans (intermediate payments, relocation expenses, balance payments) have largely been resolved, but loans are primarily being issued to low-income real demanders. Conversely, subordinate loans taken with Jeonse are still being pushed down in priority.

As of the filming date in early September, only one or two primary financial institutions are open based on counselor availability, and secondary financial institutions are also limited to about three or four. CEO Kang emphasized the importance of checking in person, as the remaining loan quotas may vary by branch.

Many banks have already issued more loans in the first half than originally planned, leaving little capacity for additional loans in the second half. The financial authorities are coordinating and allocating total loan amounts by bank, with priority given to banks that have strictly adhered to the quotas. Therefore, CEO Kang explained, understanding each bank's situation is crucial for obtaining a loan.

The possibility of Samsung Fire & Marine Insurance loans, for which counselor availability is currently exhausted, reopening around September 11th has been raised. Those planning balance payments in December will need to start consultations and applications 90 days in advance, so they should monitor this timing closely. Major bank branches, including Industrial Bank of Korea, have also exhausted their quotas, necessitating prompt inquiry.

CEO Kang Yeon-ok projected that banks are likely to resume loans early next year when they receive new quotas. Expectations are high, especially since early January has seen many cases where unit agricultural cooperatives and Nonghyup Bank offered loans with large quotas and low interest rates. For those facing December balance payments, she advised considering setting up a mortgage first and then refinancing with a new loan early next year as an alternative.

It was emphasized that local branches are not exempt from total loan amount regulations. CEO Kang explained that it only appears as if there are many quotas available in rural areas because the total quota is consumed by consultations primarily in the metropolitan area; the overall total amount regulation applies equally. Therefore, she added, prompt verification is also needed when obtaining balance payment loans in rural areas.

Starting in January next year, if the actual residency requirement is not met, extension of Jeonse loans will be impossible. This measure is intended to prevent individuals who own apartments in regulated areas of Seoul and the metropolitan area from engaging in gap investment without actual residency, and then taking out Jeonse loans for their own living arrangements. Restrictions on Jeonse loans for multi-homeowners and those owning apartments worth 300 million won or more in speculative overheated zones will be expanded, and Jeonse guarantee ratio regulations will also be strengthened. These changes are expected to significantly impact the gap investment market.

CEO Kang Yeon-ok diagnosed that demand for trading up from existing homes in the Gangnam-Seocho area is stalled due to loan issues. Conversely, the housing market outside Seoul, for homes priced at 600 million to 900 million won or less, is seeing active 'bull market' conditions, deepening polarization, she added.

While some view these rate hikes as already priced into the market, the problem is that the currently mentioned rates may not hold and could rise further. Therefore, she emphasized the need to carefully review individual repayment capabilities in preparation for a rising interest rate trend.

CEO Kang Yeon-ok explained that latent demand still exists, and transactions by cash-rich individuals have decreased due to tax issues. She expressed the view that the fundamental demand for Gangnam will not change.

She stated that after observing market conditions post-Chuseok, if tax regulations are deemed insufficiently effective, there is a possibility of additional loan regulations early next year. This is interpreted as part of the government's continuous efforts to prevent market overheating.

While DSR (Debt Service Ratio) regulations apply to personal loans, business loans can provide LTV (Loan-to-Value) up to 70-80%. CEO Kang believes that once an officetel is purchased, it is very difficult to sell again, and advises a cautious approach unless the goal is to receive monthly rent income for life.

CEO Kang Yeon-ok explained that in provincial areas, there is an investment method of taking out senior loans and then utilizing semi-Jeonse. This phenomenon can be seen as a balloon effect of regulations, and it is necessary to pay attention to changes in the flow of the local real estate market.

Recently, there has been an increase in agreements prohibiting Jeonse or monthly rent when receiving interim payment loans in regulated areas, requiring caution. In many cases, a 600 million won loan limit applies depending on the resident recruitment announcement. CEO Kang Yeon-ok explained that while a strategy of 'first win, then worry' was effective in the past, it is now difficult due to complex regulations such as interim payment loans and the obligation to move in.

She predicted that as the structural problem of insufficient supply in good areas continues, the real estate market will see intensifying differentiation based on location. Therefore, only certain areas will continue to rise, and she advised considering these fundamental supply and demand conditions when investing.

Newborn loans are eligible for refinancing and have low early repayment fees, allowing for a strategic approach. This method provides the possibility of reducing initial loan burden and transitioning to more favorable terms in the future.