The new restrictions on lending will not affect homeowners in other metropolitan cities who wish to purchase new homes in provincial areas, or provincial homeowners.
Upon announcing a new set of real estate regulations in September, the government said metropolitan homeowners would be ineligible for additional mortgage loans but that exceptions could be made under certain circumstances.
All areas of Seoul are considered “speculative” housing markets, while 11 of its districts, including three affluent districts in southern Seoul -- Seocho-gu, Gangnam-gu and Songpa-gu -- have been designated as “overheated speculative” areas. These areas are subject to heavier taxes, tougher loan-to-value ratios and tougher debt-to-income ratios when maximum mortgage loans are calculated.
By Son Ji-hyoung