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) plans to broaden housing finance assistance for young individuals, newlyweds, and first-time homebuyers while retaining its overarching household-debt restrictions, according to the regulator. FSC Chairman Lee Eog-weon unveiled a set of measures intended to prevent stringent lending criteria from unduly limiting financing opportunities for sincere homebuyers or new housing developments.
The commission will uphold the current loan-to-value and debt-service ratio rules, while permitting banks to continue offering loans based on new housing supply and purchases by young and first-time buyers without facing undue limitations from household lending quotas.
A crucial component of the package is a three-part housing finance program specifically designed for younger borrowers. The FSC intends to introduce a mortgage loan offering longer-term financing options for young people preparing to buy homes. Additionally, the regulator will introduce a new guarantee product to facilitate the refund of jeonse deposits. The regulator will also expand the application of borrowers' anticipated future income in the lending process.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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