Hana Bank suspends variable-rate mortgage loans, caps credit line at W50m

Hana Bank is temporarily suspending new non-face-to-face mortgage loans and variable-rate mortgage loans to tighten household lending controls. The bank is also capping new revolving credit line accounts at 50 million won ($35,200).

Hana Bank halted new non-face-to-face mortgage applications starting Friday, according to financial industry sources.

Beginning Tuesday, new revolving credit line accounts will be capped at 50 million won. An existing measure limiting total unsecured credit loans per borrower to 100 million won will remain in place.

Starting Wednesday, the bank will also temporarily suspend new variable-rate mortgage loans across all sales channels, including both in-person and non-face-to-face options.

"We decided to implement these measures to manage household loans efficiently and maintain a stable lending stance centered on borrowers with genuine housing needs," a Hana Bank official said.

Hana Bank had already moved to rein in household lending by capping total unsecured credit loans per borrower at 100 million won and temporarily suspending new mortgage insurance subscriptions.

Other banks are also raising their lending thresholds to meet annual household loan volume targets, rolling out a series of tightening measures that include reducing mortgage loan limits and temporarily halting loan applications through loan solicitor channels.

The combined increase in household loans at the five major banks from the start of this year through Sunday exceeded their annual targets submitted to the Financial Supervisory Service at the beginning of the year by more than 1 trillion won, even excluding policy-backed loans.