As the government is trying to control the growth rate of household loans, it will gradually expand the scope of the DSR application to prevent excessive loans. Instead, the government decided to introduce ultra-long-term mortgages to lower the cost of home-building for young people with low incomes.
The government decided on the "Household Debt Management Plan" jointly organized 폰테크 by the 34th Emergency Economic Central Countermeasures Headquarters and the 2nd Innovation Growth Strategy Meeting in 2021
Looking at the details, the target will be gradually expanded over three stages with the aim of full implementation of the 'DSR', which is applied only to the current specific borrowers, in July 2023.
There are two cases where 40% of DSR is applied to each current borrower. The total amount of credit loans received by high-income earners with annual income of more than 80 million won or new mortgage loans from banks with collateral for houses with a market value of more than 900 million won in speculative areas and speculative overheating districts exceeds 100 million won.
Now, since the average value (DSR 40%) is only required for each bank, DSR has received more than 40% of loans by borrower, but if regulations are applied by borrower, the limit of loans that individuals can receive will decrease.
However, if the repayment funds other than income are recognized or there is a policy necessity, etc., the application of DSR by the borrower unit is excluded.
In addition, the system will be improved so that the actual expiration is reflected as much as possible when calculating DSR. The government plans to induce rational practice settlement through pilot operation for a sufficient period of time so that there is no sudden market shock related to credit loan DSR calculation.
It spreads and operates various and flexible income recognition methods so that there is no difficulty in calculating income by borrower. In addition to the evidence income such as income tax payment data, it will utilize the recognized income through the national pension and health insurance premium payment data.
In order to expand financial support for the ordinary people and young people, we will rationalize the DSR calculation method considering the life income cycle. For borrowers (such as young people) who have low income but are likely to increase their future income, they will use the "Future Income Recognition Standard" when calculating DSR.
In order to ease the financial burden when housing is being prepared, it will introduce 40-year maturity loans to policy mortgages for young people (under 39 years old) and newlyweds to ease the burden of repayment of principal and interest. In addition, we will promote the linkage of 'housing supply - long-term mortgage' so that young people can start to build their own homes without any initial burden.
Policy products such as support loans are based on the age of 34, but the decision to purchase a house is supported by 39 years old considering that more capital accumulation time is needed
We will introduce a system of regulation of the main bank to improve the soundness supervision system of vulnerable areas such as non-banking and non-maintained households. The LTV limit regulation for non-subsidized rents such as land, officetel, and shopping malls will be introduced to all financial institutions in a lump sum, and the new non-subsidized rents in the land transaction permit area will be strengthened to 40% of LTV. However, actual buyers such as concentrated fishermen will be allowed to exclude.
We will check the appropriateness of handling non-mainstream fences through on-site inspections such as Bukheung Nonghyup and surveys on the overall non-mainstream fences. We will check the recruitment route, loan review, and follow-up management centered on land mortgage loans, and provide information to the investigation authorities about loans that are suspected of illegal activities such as speculation suspicions
In addition, we will continue to check the soundness of mutual finance including non-maintenance support centering on the 'Mutual Financial Policy Council'.Based on the results of the inspection, we plan to improve the lending practices of mutual financial institutions by providing additional supplementary measures if necessary