Mortgage delinquency rates among homeowners in their 20s and below are surging, far outpacing other age groups. (Image courtesy of Yonhap)
SEOUL, Dec. 12 (Korea Bizwire) – In a concerning trend, mortgage delinquency rates among homeowners in their 20s and below are surging, far outpacing other age groups. Young adults who have recently entered the workforce are finding themselves trapped in high-interest mortgages, leaving them struggling to make the monthly payments.
According to data obtained by National Assembly member Yang Kyung-sook on November 11 from 19 different banks, the delinquency rate for all mortgage loans at the end of the third quarter this year stood at 0.24 percent, double last year’s 0.12 percent. During the same period, the total amount in arrears also more than doubled, skyrocketing from 760 billion won to 1.56 trillion won.
Notably, the delinquency rate for individuals in their 20s and below reached 0.39 percent.
The percentage of borrowers who delayed their principal and interest payments by more than a month surged by 0.15 percentage points compared to the previous year’s 0.24 percent, significantly surpassing other age groups.
For the first time, the delinquency rate for those in their 20s and below, as of the end of the third quarter of 2021, surpassed all other age groups. Until recently, it was typically the older age groups, such as those in their 50s and 60s, that had relatively higher delinquency rates.
Although the delinquency rate for those aged 20 and below decreased slightly from its all-time high of 0.44 percent at the end of the second quarter of this year to 0.39 percent at the end of the third quarter, it still remains at a concerning level. Furthermore, the delinquent amount for this age group reached a record high of 150 billion won at the end of the second quarter, dropping slightly to 140 billion won at the end of the third quarter, but still exceeding last year’s figure of 90 billion won by more than 50 percent.
Meanwhile, the financial health of those in other age groups is also a cause for concern. The delinquency rate for those in their 30s increased from 0.09 percent at the end of the third quarter of last year to 0.20 percent at the end of the third quarter this year, while it was also up for those in their 40s (0.12 percent to 0.23 percent), 50s (0.13 percent to 0.25 percent) and 60s or older (0.13 percent to 0.23 percent).
J. S. Shin (js_shin@koreabizwire.com)
