New household loans and mortgage lending both declined in the second quarter of this year as the financial sector continued to tighten household debt management. In particular, new mortgage lending fell by the largest margin since data compilation began, dropping to its lowest level in a year and a half.
According to the "Q2 2026 Household Debt Statistics by Borrower" released by the Bank of Korea on the 25th, the average new household loan per borrower in the second quarter was 34.14 million won, down 1.28 million won from the previous quarter. This was the lowest level since the first quarter of 2023 (33.44 million won).
The decline in new mortgage lending was even greater. The average new mortgage lending per borrower in the second quarter was 208.29 million won, down 21.1 million won from the previous quarter. This was the largest decline since data compilation began in 2013, and the amount of new lending itself was the lowest since the fourth quarter of 2024 (206.48 million won).
By age group, those in their 40s recorded the largest decline at 35.37 million won. Those in their 30s also fell by 26.32 million won, while those in their 50s and 60s and older declined by 12.81 million won and 10.69 million won, respectively.
By sector, new mortgage lending at banks rose by 3.42 million won, but a decline of 14.39 million won at non-bank institutions dragged down the overall figure.
Although lending barriers rose, the influence of those in their 30s—a core demographic in the housing market—actually increased. Those in their 30s accounted for 43.7% of new mortgage lending in the second quarter, up 2.3 percentage points from the previous quarter (41.4%). This was the highest level in the relevant statistics.
Those in their 40s followed at 24.5%, then those in their 50s at 15.9%, 60s and older at 9.9%, and 20s at 6.0%.
The average mortgage balance for those in their 30s also rose by 4.09 million won from the previous quarter to 234.19 million won, an all-time high. In other words, while new lending shrank, existing loan balances actually grew.
Those in their 20s stood out even more. It was the only age group in which new mortgage lending increased, with the average new lending amount rising 3.92 million won from the previous quarter to 232.17 million won, setting another record high.
The average mortgage balance for those in their 20s also rose 5.75 million won from the previous quarter to 203.94 million won. This marked the first time the average mortgage balance for those in their 20s surpassed 200 million won.
The BOK analyzed that those in their 20s were less affected by regulations, as the proportion of loans to non-homeowners and first-time homebuyers is relatively high among them. However, it explained that since those in their 20s account for about 6% of all new mortgage lending, their impact on the overall market is limited.
By region, the decline in the greater Seoul area was notable. New mortgage lending per borrower in the greater Seoul area was 230.59 million won, down 43.97 million won from the previous quarter. The decline in Seoul reached 60.65 million won.
The Gangwon-Jeju region also fell by 21.08 million won, while the Southeast and Chungcheong regions declined by 9.42 million won and 5.08 million won, respectively. In contrast, the Honam region rose by 11.13 million won and the Daegu-Gyeongbuk region by 1 million won. The BOK explained that in the Honam region, there was an impact from increased loans related to housing subscriptions in some areas such as Jeonju and Gwangju.
Although new lending shrank, the loan balance per borrower actually increased. As of the end of the second quarter, the average household loan balance per borrower was 97.9 million won, up 500,000 won from the previous quarter, and the average mortgage balance was 161.93 million won, up 1.87 million won. Both figures were the highest on record on a quarterly basis.
New lending includes not only new borrowers but also increases and refinancing by existing borrowers. The BOK explained that as the financial sector tightened loan management and the scale of increases and refinancing shrank, the amount deducted from balances through repayment of existing loans also declined, resulting in an overall increase in balances.
New lending could rise again in the third quarter. The BOK said, "With the August 13 measures raising the total household loan cap, and with the possibility of increased loan execution centered on group loans, lending may rise," but added, "The greater Seoul housing market, additional government measures, and the movement of funds into the stock market remain variables."
