Seoul mortgage borrowers pay 40% of income to service debt
Seoul mortgage borrowers pay close to more than 40 percent of their income to service debt, government data showed Tuesday. The heavy debt repayment burdens followed postpandemic monetary tightening and a spike in borrowing costs, translating to a rise in both their delinquency rates and a 30 percent year-on-year increase in the foreclosed properties auctioned off. Many of them rushed to take out mortgages during the pandemic when interest rates were ultralow. According to the Korea Housing-Finance Corp., the Housing Affordability Index (K-HAI) in Seoul came to 157.9 in October-December last year, up from 150.9 three months earlier. The higher the figure, the less affordable the housing. The state-run entity added that Seoul mortgage borrowers paid 40.6 percent of their income on principal and interest payments. The quarterly figure overcoming the 40 percent mark came three quarters after the figure stood at 38.8 percent in the January-March period last year. In the fourth quarter of 2023, the figure was at 40.1 percent. Separate data from the central bank showed that the mortgage delinquenc
