Mortgage Loans Reach Record High…Concerns Over Real Estate Market Overheating Amid 'Debt Investment' Frenzy
Recently, concerns over the overheating of the real estate market and the increase in household debt have resurfaced as mortgage loans from major banks have surged.
According to the financial industry, the mortgage loan balances of the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH NongHyup) increased by more than 7.5 trillion won in July alone, marking the largest monthly increase on record. This level surpasses the surge in loans seen during the low-interest-rate period at the beginning of the COVID-19 pandemic in 2021.
The recent surge in mortgage loans is attributed to an increase in high-priced housing transactions and the easing of government real estate regulations, which are believed to be fueling the 'debt investment' trend. Particularly in the Seoul metropolitan area, there is growing concern about the imbalance within the financial market as mortgage loan concentration intensifies.
In response to this situation, financial authorities have strengthened the stress test criteria for interest rates applied to mortgage loans in the metropolitan area, and some banks have implemented measures to limit loan amounts. However, debates continue over whether these measures will be sufficient to stabilize the real estate market and household debt.
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Mortgage Loans Reach Record High…Concerns Over Real Estate Market Overheating Amid 'Debt Investment' Frenzy
Recently, concerns over the overheating of the real estate market and the increase in household debt have resurfaced as mortgage loans from major banks have su
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