Seoul apartment purchase cancellations accelerated in July as South Korea's tighter household loan controls and lower mortgage limits squeezed buyers who rely on financing. Ministry of Land, Infrastructure and Transport data show 239 apartment contracts were canceled in Seoul in July, up 22.6% from 195 in June and already the highest monthly figure this year even though the reporting window remains open through the end of the month. The increase intensified after KB Kookmin Bank cut its mortgage ceiling on July 10 from 600 million won to 300 million won, while other banks also restricted new applications through loan brokers. Cancellations from July 10 to July 31 made up 67.3% of July's total. The pressure has been most visible in mid- to lower-priced apartments where borrowing plays a larger role. In the 900 million won to 1.5 billion won range, cancellations jumped 64.8% from 54 in June to 89 in July. Buyers are increasingly looking to internet-only banks such as KakaoBank, whose mortgage products face relatively fewer restrictions, while new complexes approaching move-in are running into confusion over balance-payment loans (final stage home purchase loans) because banks are using different lending standards. Financial industry participants warn the disruption could worsen in the second half unless balance-payment loans for projects sold before the June 27 real estate measures are excluded from household loan totals or clearer exceptions are set. Officials have partially eased Ddimmdol loan rules (a South Korean policy mortgage program) for land-lease public housing pre-subscription applicants, but the relief does not cover main subscription applicants. Market watchers say the fallout is falling hardest on end-users, especially households trying to buy a new home before selling their existing one in a market where tighter credit is also suppressing demand from would-be buyers.