New mortgage loans per borrower drop at sharpest clip in Q2

In the second quarter, new mortgage loans per borrower experienced the sharpest decline on record, falling as regulations aimed at cooling the overheated housing market took effect, according to central bank data released by the Bank of Korea (BOK) on Tuesday. The average fresh mortgage lending per borrower decreased to 208.29 million won (US$159,900) from an all-time high of 229.39 million won in the previous quarter.

This marked the largest quarterly drop since BOK began tracking this data in 2013. New household lending per borrower also fell, with an average of 34.14 million won per borrower, marking the lowest level since the first quarter of 2023. Local banks tightened lending controls in line with government measures to stabilize the property market.

The decline in new mortgage loans was observed across all age groups, with borrowers in their 40s seeing the most significant drop of 35.37 million won, followed by those in their 30s with a decline of 26.32 million won. In terms of regions, the greater Seoul area experienced the steepest decrease of 43.97 million won per borrower, while the Gangwon region saw a reduction of 21.08 million won.