Shinhan Bank will offer a special mortgage quota of 500 billion won (about $360 million) to borrowers aged 39 and under, channeling to young buyers the extra lending room it gained after financial regulators eased their household debt growth targets.
The bank notified loan brokers on Sept. 17 that it would run the 500 billion won special mortgage quota for customers aged 39 and under, according to financial industry sources. The first tranche of 250 billion won will be available from Sept. 18, with the remaining 250 billion won offered from Oct. 2. Loans will be disbursed between Nov. 6 and Nov. 18, targeting young owner-occupier buyers who must settle balance payments on home purchases during that period.
Shinhan Bank's mortgage applications through loan brokers already closed early once this month. The bank resumed taking broker-referred mortgage applications on Sept. 1 but halted them two days later after a rush of requests exhausted the quota.
The special quota channels to young borrowers the additional lending capacity the bank secured after the government relaxed its household debt growth caps.
