SKorea announces policies to boost housing market
South Korea's government Sunday announced measures to ease curbs on mortgage lending to counteract a slump in the housing market.
Under the plan, jointly announced by several agencies including the land and finance ministries, the government will temporarily roll back some restrictions introduced in the mid-2000s to curb soaring prices.
Limits for some borrowers will be lifted until next March, giving banks the power to decide how much they can lend to homebuyers.
Previously, borrowers were banned from taking loans with an annual repayment worth more than 40 to 60 percent of their income, depending on the location and price of a property.
The restriction will be lifted for those with no homes or single-house owners who buy properties worth less than 900 million won (752,193 dollars) in all areas except a few districts notorious for speculation, the land ministry said in a statement.
"Those with no homes or single-home owners account for more than 91 percent of all households, so all of them will potentially benefit from the change," Vice Land Minister Jung Chang-Soo told reporters.
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