SC First Bank to Fully Resume Mortgage Credit Insurance Next Month

SC First Bank will fully resume the enrollment of Mortgage Credit Insurance (MCI) for mortgage loans starting October 1. This decision comes approximately two and a half months after the bank suspended MCI enrollment in July to manage household loan volumes.

According to the financial sector on September 29, SC First Bank will allow MCI enrollment for all mortgage loans starting with applications submitted on October 1. The bank had temporarily halted MCI enrollment in December last year, resumed it at the beginning of this year, but then suspended it again on July 15.

In late August, the bank resumed MCI enrollment specifically for apartment balance loans, and now it is expanding this to include general mortgage loans.

MCI, issued by SGI Seoul Guarantee, is an insurance that allows borrowers to avoid deducting small rental deposits from their loan limits when obtaining a mortgage. Without MCI, borrowers must subtract the small rental deposit calculated based on the Loan-to-Value (LTV) ratio from the maximum loan amount. Therefore, the resumption of MCI enrollment will effectively increase the mortgage limits available to borrowers.