S Korea to tighten mortgage curbs for multiple-home owners

Seoul

SOUTH Korea will impose fresh mortgage curbs for owners of multiple homes to put a brake on binge borrowing, amid concerns a build-up in household debt could leave the economy exposed to a crash, the government said on Tuesday.

Starting 2018, borrowers applying for mortgages on second homes will see tightened loan limits, with lenders required to include principal balance of the borrowers' existing debt in measuring their credit worthiness for new loans.