Variable Mortgage Loan Interest Rates Decline... Lowest at 2.63%

[Asia Economy Reporter Kim Min-young] The downward trend in variable-rate mortgage loan interest rates continues. This is due to the decline in COFIX (Cost of Funds Index) announced the previous day.

According to the banking sector on the 16th, major banks such as Shinhan, KB Kookmin, Woori, and NH Nonghyup Bank have all lowered the new balance-based COFIX-linked variable mortgage loan interest rates by 0.06 percentage points compared to the previous month, effective from this day. This marks the sixth consecutive month of decline.

Shinhan Bank's new balance-based COFIX-linked mortgage loan interest rates are estimated at 2.83?4.49%, Kookmin Bank at 2.85?4.35%, Woori Bank at 2.89?3.89%, and Nonghyup Bank at 2.63?4.24%.

The COFIX-linked interest rates based on new loan amounts also decreased by 0.03 percentage points. After rebounding last month, the rates reversed to a decline within a month. Shinhan Bank's rates are 2.86?4.52%, Kookmin Bank 2.81?4.31%, Woori Bank 3.00?4.00%, and Nonghyup Bank 2.74?4.35%.

KEB Hana Bank, which uses the 6-month financial bond as a benchmark, applies variable mortgage loan interest rates of 3.081?4.381% based on the new balance and 3.341?4.641% based on new loan amounts.

Except for Hana Bank, the four major banks lowered their variable mortgage loan interest rates due to the decline in December's COFIX announced by the Korea Federation of Banks the previous day.

COFIX is the weighted average interest rate of deposit products raised by eight domestic banks, including fixed deposits, installment savings, mutual installment savings, and housing installment savings. It serves as the benchmark for variable-rate mortgage loans handled by banks. When the interest rates of deposit products such as actual deposits, installment savings, and bank bonds handled by banks increase or decrease, COFIX reflects these changes by rising or falling accordingly.

The Korea Federation of Banks announced the previous day that December's new balance-based COFIX was 1.49%, and new loan amount-based COFIX was 1.60%, down 0.06 percentage points and 0.03 percentage points respectively from the previous month.

This content was produced with the assistance of AI translation services.