Regulatory Alerts2024-06-13
Added · Updated
Regulations Governing the Extension of Mortgage Loans by Financial Institutions
The Regulations define mortgage loans and impose specific loan-to-value limits and restrictions on financial institutions extending such loans. Housing loans to corporations are capped at 40% of the property value with no grace period, while home loans to natural persons with existing mortgages face caps of 60% or 40% depending on the number of outstanding loans and location. Land loans are limited to 50% of the acquisition cost or appraised value, unsold housing unit loans to 40%, and idle industrial land mortgage loans to 40%, with specific exceptions for development-started sites. The amendments, effective June 14, 2024, apply to loans processed before that date under the previous provisions.
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