NH Nonghyup Bank Further Eases Mortgage Regulations... Resumes Refinancing and 40-Year Term Mortgages

Refinancing Mortgages from Other Banks Resumes on August 31
MCG Restrictions Lifted to Strengthen Support for Genuine Borrowers

NH Nonghyup Bank will resume refinancing mortgage loans from other banks and allow 40-year term mortgages in non-metropolitan areas. The bank will also lift restrictions on Mortgage Credit Guarantee (MCG) enrollments. This move comes after the recent resumption of variable-rate mortgage sales and reflects a relaxation of the bank’s self-imposed household loan regulations.

According to the financial sector on August 26, Nonghyup Bank plans to significantly relax its autonomous household loan management policies starting August 31. First, the bank will resume face-to-face mortgage offerings for the purpose of refinancing loans from other banks, which had been suspended since mid-May.

The term limits on mortgages in non-metropolitan areas will also be lifted. While Nonghyup Bank had shortened the maximum term for non-metropolitan mortgages handled at branches from 40 years to 30 years since early June, it will now allow loans with up to a 40-year term going forward.

The restriction on issuing mortgage loans with Mortgage Credit Guarantee (MCG) will also be lifted. MCG is a product that provides a guarantee equivalent to the small rental deposit amount deducted when calculating the mortgage limit; by using this, borrowers can increase their available loan amount even with the same collateral.

Previously, Nonghyup Bank restarted new accounts for its variable-rate mortgage product ‘NH Mortgage Loan’ on August 20, after a roughly three-month suspension. With the latest measures, the bank continues to relax the household loan regulations that were implemented in the first half of the year for management purposes.

An NH Nonghyup Bank representative stated, “We have relaxed internal regulations in order to strengthen financial support for real demand borrowers.”

This content was produced with the assistance of AI translation services.