Hana Bank to Suspend New Non-Face-to-Face Mortgage Loans Starting August 7

Hana Bank is suspending the sale of non-face-to-face mortgage loans in order to manage the total volume of household loans.

To slow the pace of household loan growth, major banks are consecutively raising mortgage loan interest rates. On the 3rd, a customer received consultation at a major bank in Euljiro, Jung-gu, Seoul. Photo by Yongjun Cho jun21@

According to the financial sector on August 7, Hana Bank has decided to halt new issuances of non-face-to-face mortgage loans starting on this day. A Hana Bank representative explained, "This is to efficiently manage household loans and maintain a stable supply of financing centered on genuine demand."

The suspension of non-face-to-face mortgage loan sales is temporary; however, the resumption date has not been determined.

Previously, Hana Bank strengthened its management of household loans by limiting household credit loans to a combined total of 100 million won per borrower and temporarily suspending new enrollments in mortgage loan insurance.

Other banks are also tightening household loan restrictions to meet annual management targets for the total volume of household lending. This includes lowering the mortgage loan limits, temporarily suspending loan applications through loan broker channels, and halting variable-rate mortgage loans.

These measures appear to be in response to a sharp increase in household loan totals this year, aimed at complying with total volume regulations. As of August 2, the increase in household loans at the five major banks (excluding policy loans) has already exceeded their annual targets submitted to the Financial Supervisory Service at the beginning of this year by over 1 trillion won.

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