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Financial Services Commission Chair: Banks to Decide Basis for Mortgage Balance Loans
Finance · Major Banks · yonhap_finance · 2026-08-24
FSC Chairman Lee Eok-won stated that banks should autonomously decide whether to use presale prices or appraised values for calculating mortgage balance loans.
What Happened
Mortgage Loan Standards: FSC Chairman Lee Eok-won stated that the decision to use either presale prices or appraised values for calculating mortgage balance loan limits for new apartments rests with the banks. He emphasized that the regulatory authority will not issue specific mandates, leaving the choice to individual financial institutions.
LTV for Relocation Loans: Regarding the Loan-to-Value (LTV) ratio for relocation loans, Chairman Lee clarified that the 'member presale price' serves as the standard. This value is derived from the estimated construction cost confirmed during the management and disposal plan approval process.
Household Debt Management: Addressing concerns over the upward adjustment of household loan growth targets, Lee explained that the move reflects increased actual demand driven by higher economic growth and rising housing transactions. He noted that this is a measured response to market conditions rather than an indiscriminate expansion of credit.
Youth Policy and ETFs: Lee dismissed claims that the 'Youth Future Bogeumjari Loan' forces young people into non-apartment housing, describing it as an additional option for those with limited financial capacity. He also confirmed that the introduction of single-stock leveraged ETFs followed all necessary regulatory review and assessment procedures.