Gov't to expand housing finance support for young, 1st-time buyers while keeping debt curbs
The Financial Services Commission (FSC) will expand housing finance support for young people, newlyweds and first-time homebuyers while maintaining its overall household-debt controls, as part of the government's efforts to stabilize the housing market, the regulator said Thursday. FSC Chairman Lee Eog-weon announced a package of measures aimed at ensuring tighter lending rules do not…
The Financial Services Commission (FSC) announced Thursday that it will broaden housing finance support for young individuals, newlyweds, and first-time homebuyers, all while preserving overall household debt controls as part of the government's efforts to stabilize the housing market. FSC Chairman Lee Eog-weon unveiled a suite of measures designed to ensure that stringent lending rules do not unduly hinder financing opportunities for genuine homebuyers or new housing development.
The commission will retain the current loan-to-value and debt-service ratio rules, while enabling banks to continue providing loans tied to new housing supply and home purchases by young people and first-time buyers without facing undue restrictions from household lending quotas. A central component of this package is a three-pronged housing finance program tailored for younger borrowers.
The FSC intends to introduce a mortgage loan offering longer-term financing for young people planning to buy homes, alongside a novel guarantee product to facilitate jeonse deposit refunds. Additionally, the regulator will broaden the utilization of borrowers' anticipated future income in financing decisions.
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