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The government and the ruling party have stepped up to broaden the target of applying an additional 10% point of the mortgage recognition ratio (LTV) in relation to the deregulation on loans to the youth and homeless people. However, it was decided not to increase the addition ratio (10% points).
Democratic Party lawmaker Kim Byeong-wook said at a briefing after a closed party meeting of the National Assembly Political Affairs Committee on the 20th, “It will be more likely to broaden the subject of the additional application.” He said, “It won’t be easy” when asked if we want to further raise the addition ratio, which is currently 10% points.
Currently, in speculation areas, overheated areas, and areas subject to adjustment, LTV is applied at 40% for houses under 900 million won and 20% for houses under 900 million won to 1.5 billion won. For the youth and homeless people, an additional 10% point of LTV is allowed when purchasing a house with a combined income of 80 million won or less in a speculative or overheated district (500 million won or less in an area subject to adjustment). Rep. Kim’s words mean that he will broaden the subject to which the additional addition is applied. It is expected to ease the income and housing price requirements.
Rep. Kim also said, “We will expand DSR to focus on borrowers,” and “We discussed ways to expand it in consideration of the borrower’s repayment ability.” He added, “Today we have decided on a big direction, and we need to consult with the Ministry of Land, Infrastructure and Transport for specific details.”
Reporter Go Eun-i [email protected]
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