Nonghyup Bank to Further Ease Mortgage Lending Restrictions... Refinancing and 40-Year Terms Available Starting on the 31st

[Financial News] Nonghyup Bank has decided to lift restrictions on refinancing mortgages from other banks and on mortgage credit guarantee (MCG) products, following its resumption of variable-rate home mortgage lending.
According to the financial sector on the 26th, Nonghyup Bank will implement its self-regulatory household lending measures starting on the 31st. The move is aimed at strengthening financial support for end users.
First, it will resume face-to-face refinancing for mortgages from other banks, which had been temporarily restricted since May 20. As a result, borrowers will once again be able to switch home loans from other banks to Nonghyup Bank.
The bank will also lift the maturity cap on mortgages outside the Seoul metropolitan area. Since June 1, it had reduced the loan term for household mortgages handled at branches outside the capital region from a maximum of 40 years to 30 years. Starting on the 31st, it will once again offer mortgages with terms of up to 40 years.
Restrictions related to MCG, which affect mortgage limits, will also be eased. Since June 12, Nonghyup Bank had temporarily limited MCG enrollment for mortgages, excluding policy loan products.
MCG is a housing loan guarantee provided by KHFC that helps offset the reduction in borrowing capacity caused by the small tenant deposit amount when a mortgage is executed. If the MCG restriction is lifted, some borrowers will be able to secure a higher mortgage limit than before.
The latest move is part of Nonghyup Bank's gradual easing of household lending rules. The bank resumed new sales of its variable-rate mortgage product, the 'NH Home Mortgage Loan,' on the 20th. That came about two and a half months after it restricted new lending in June to manage total household loan volume.

[email protected] Seo Ji-yoon Reporter