Hana Bank has announced a temporary halt to new online mortgage loans. This decision comes as the bank responds to ongoing increases in lending despite government regulations on household loan limits.
According to financial industry sources, Hana Bank will cease processing new online mortgage loans starting today.
A bank official stated, "This measure aims to ensure efficient management of household loans and maintain a stable supply of finance focused on genuine demand."
Previously, in June, Hana Bank limited household credit loans to a maximum of 100 million won per borrower. Additionally, as of August 1, the bank temporarily suspended new enrollments for mortgage insurance (MCI, MCG).
As demand for household loans remains strong, banks have recently been competing to tighten lending practices. KB Kookmin Bank, for instance, reduced its mortgage loan limit from 600 million won to 300 million won and has recently raised interest rates. Other banks have also taken steps to restrict lending, including halting loan applications, reducing preferential rates, and limiting mortgage insurance enrollments. This year, the increase in household loans among the five major banks has exceeded their annual target by over 1 trillion won, excluding policy-based loans, according to the Financial Supervisory Service.
* This article has been translated by AI.
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