Mortgage Loan Interest Rate Benchmark KOFIX Declines... 0.03%p Decrease Based on New Transactions in February

New Handling Amount 기준 COFIX 0.83%

[Asia Economy Reporter Park Sun-mi] The COFIX (Cost of Funds Index), which serves as the benchmark for variable-rate mortgage loans at commercial banks, has collectively declined.

On the 15th, the Korea Federation of Banks announced that the COFIX based on new contracts for February fell by 0.03 percentage points from the previous month to 0.83%. This marks a decline for two consecutive months since recording 0.90% in December last year. The outstanding balance-based COFIX also dropped by 0.04 percentage points from the previous month to 1.09%, and the new outstanding balance-based COFIX recorded 0.87%, down 0.03 percentage points from the previous month.

Commercial banks will immediately reflect the February COFIX rate level, announced on this day, in the variable interest rates of new mortgage loans starting from the 16th.

COFIX is the weighted average interest rate of funds raised by eight domestic banks. It rises or falls when the interest rates of deposit products such as actual deposits, savings, and bank bonds handled by banks increase or decrease. While the outstanding balance-based COFIX and new outstanding balance-based COFIX generally reflect market interest rate changes gradually, the COFIX based on new contracts is calculated based on funds newly raised during the relevant month, so it tends to reflect market interest rate changes more quickly.

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