570,000 Families Spend 60% of Income on Mortgages
The number of "house poor" families groaning under the burden of mortgage repayments stood at 569,000 due to dropping housing prices, according to data released by the Financial Services Commission on Tuesday.
Their household debt service ratio is higher than 60 percent, and their total loans amount to W149.5 trillion (US$1=W1,091). The ratio is the proportion of debt payments to disposable personal income.
Among all house-poor households, the number of those classified as "high-risk" with more debts than assets is estimated at upwards of 101,000. Their number would rise to 147,000 if housing prices fall another 20 percent due to the real estate slump.
Banks face losses of up to W16.6 trillion if numbers rise further.