FSC Introduces Revision to Supervisory Regulations to Ease Financing Burden of HomebuyersNov 10, 2022

The FSC will give advance notices of revision to several supervisory regulations between November 10 and 16 as a follow-up action to implement the housing market-related measures introduced at the 11th emergency economic meeting held on October 27 and the 3rd ministerial meeting on housing market held earlier today. The revised supervisory regulations stated below are expected to take effect from December 1, 2022.

 

a) The loan-to-value (LTV) ratio is currently applied differentially for no-home or one-home owners in regulated areas by different locations and different price of houses. This will be raised to uniform application of 50 percent.

 

b) Allow no-home or one-home owners who plan to purchase an apartment valued over KRW1.5 billion in designated speculation areas and high-speculation areas to finance their house with a mortgage loan.

 

c) Raise the top LTV ratio for lower income and non-speculative homebuyers who plan to purchase a house in regulated areas to up to 70 percent with the maximum loan amount of KRW600 million.


* Please refer to the attached PDF for details.