NH Nonghyup Bank will resume face-to-face refinancing for mortgages from other banks after a three-month hiatus, following the resumption of variable-rate mortgage loans. The bank is extending the maximum term for non-metropolitan mortgages from 30 years to 40 years and lifting restrictions on joining the Mortgage Credit Guarantee (MCG) program. This move is seen as a way to lower the barriers to borrowing as the supply capacity for household loans in the banking sector has increased since the announcement of the August 13 measures.
According to the financial sector on the 26th, Nonghyup Bank will restart face-to-face refinancing for mortgages from other banks on the 31st. The bank had limited this service since May 20 due to self-regulatory measures on household loans.
Additionally, the loan term for non-metropolitan mortgages will be extended to a maximum of 40 years, and restrictions on the MCG program, which had been in place since mid-June, will be eased. The MCG provides guarantees equivalent to the small rental deposit deducted when calculating the mortgage limit. Utilizing the MCG allows borrowers to increase their loan limits even with the same collateral.
Since the announcement of the August 13 real estate financial measures, Nonghyup Bank has been gradually easing its self-imposed restrictions on household loans. On the 20th, the bank resumed offering its variable-rate mortgage product, 'NH Housing Mortgage Loan,' for the first time in about three months, following a two-month restriction on new offerings to manage the total volume of household loans.
A bank official stated, "This is a measure to strengthen support for actual demanders."
* This article has been translated by AI.
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