Reported about 1 year ago
To alleviate the economic pressure on first-time homebuyers, the government introduced the 'New Youth Housing Loans' policy in August last year, extending loan amounts and terms to 10 million and 40 years respectively, with an additional 1.5% interest subsidy. However, this led to issues like bogus applications and subletting, while also being criticized for boosting housing market demand and contributing to rising prices. In response to recent discussions on the impact of these loans on the housing market, the Ministry of the Interior stated that if the central bank announces an interest rate hike in the future, they would recommend against further interest subsidies to prevent non-self-occupied housing funds from flowing into the market, compromising the effectiveness of price suppression policies.
Source: YAHOO