Household loans extended by South Korean lenders expanded at the fastest pace last month in six years as the local housing market gained traction amid eased mortgage rules and low interest rates, data showed Wednesday.

Outstanding household loans by local lenders reached 547.4 trillion won ($497.4 billion) as of end-October, up 6.9 trillion won from the previous month, according to the Bank of Korea.

The on-month gain marks the sharpest monthly growth since the BOK began compiling the data in 2008. It also marks more than a twofold growth from the previous month, when the figure rose 3.7 trillion won.

Of the total, mortgage loans accounted for 394.8 trillion won, increasing 6 trillion won from the previous month. It accelerated from 3.5 trillion won growth in September. Other loans, such as those for living costs, gained 900 billion over the month to 151.8 trillion won, sharply growing from a rise of 200 billion won the previous month.

Corporate loans also expanded in October, increasing 7.2 trillion won to 673.7 trillion won, more than doubling from a 3.5 trillion won gain the previous month.

The figures come as the government has been moving to prop up domestic demand and property transactions in a bid to bolster growth in Asia’s fourth-largest economy. (Yonhap)