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Mortgage loans increase at fastest pace in 2 yrs in Nov.

All News 12:00 December 12, 2018

SEOUL, Dec. 12 (Yonhap) -- Home-backed loans from South Korean banks increased at the fastest pace in two years in November despite the government's anti-speculation measures, central bank data showed Wednesday.

The total value of outstanding mortgages extended by banks came to 603 trillion won (US$535 billion) as of the end of last month, up 4.8 trillion won from a month earlier, according to the data from the Bank of Korea (BOK).

The gain marked the largest on-month growth since November 2016, when mortgage lending rose 6.1 trillion won.

The BOK said the anti-speculation measures, enacted in mid-September to curb household debts and the overheated housing market, have not fully "fed into" the market.

It usually takes some two or three months to borrow money after signing a contract, added the central bank.

Non-mortgages, on the other hand, rose 1.9 trillion won to 218 trillion won in November, slowing sharply from a 4.2 trillion won on-month gain the previous month.

As a result, the balance of total household lending from banks reached 822.2 trillion won in November, up 6.7 trillion won from a month earlier.

"The growing trend of mortgages is expected to slow down soon to some extent thanks to the government's policies," the central bank said.

Mortgage loans increase at fastest pace in 2 yrs in Nov. - 1


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