The nation’s mortgage loans posted a drop for the first time in nine years following a sharp decline in lump-sum "jeonse" rental loans.

According to a report released by the Bank of Korea(BOK) on Thursday, bank loans extended to households stood at one-point-05 quadrillion won, or around 800 billion U.S. dollars, as of the end of February, down two-point-seven trillion won from the previous month, posting a decline for the second consecutive month.

Among such loans, housing mortgage loans slipped 300 billion won, posting a drop for the first time since January 2019.

Out of all housing-related lending, jeonse loans fell two-and-a-half trillion won, the sharpest decline to be posted since related statistics began to be compiled in January 2016.

A BOK official said demand for new jeonse loans has shrunk and many households are repaying such loans as interest rates have gone up.

The official made particular note of slipping jeonse transactions as many people opt for monthly rent while loans taken out for jeonse deposits have fallen amid lower rates asked for by landlords compared to two years ago.