March New COFIX Rises 0.01%p... Bank Mortgage Loan Rates Also Change (Comprehensive)
New COFIX-Based Mortgage Loan Rates
Kookmin Bank 2.40~3.90%, Woori Bank 2.63~3.63%
[Asia Economy Reporter Park Sun-mi] The COFIX (Cost of Funds Index), which serves as the benchmark for variable interest rates on mortgage loans in the banking sector, has slightly increased based on new transaction amounts, causing changes in mortgage loan interest rates based on new transaction amounts at commercial banks.
According to the Bankers Association on the 15th, the COFIX based on new transaction amounts for March was 0.84%, up 0.01 percentage points (p) from February's 0.83%. After showing a downward trend for two consecutive months in January (0.86%) and February (0.83%) following December last year (0.90%), the COFIX based on new transaction amounts slightly rebounded in March.
On the other hand, the COFIX based on outstanding balances fell by 0.03 p to 1.06% in March from 1.09% in February. The new balance-based COFIX also recorded 0.84% in March, down 0.03 p from 0.87% in February.
COFIX is the weighted average interest rate of funds raised by eight domestic banks (NongHyup, Shinhan, Woori, SC Jeil, Hana, Industrial Bank of Korea, Kookmin, and Korea Citibank) and serves as the benchmark interest rate for variable-rate mortgage loans. Since the COFIX based on new transaction amounts is calculated using funds newly raised during the relevant month, it reflects market interest rate changes relatively quickly, whereas the COFIX based on outstanding balances and the new balance-based COFIX generally reflect market interest rate changes gradually.
Commercial banks will apply the March COFIX rate level disclosed on this day to new variable-rate mortgage loans starting from the 16th. Woori Bank will adjust the mortgage loan interest rate based on the new COFIX from the previous 2.62?3.62% to 2.63?3.63%, an increase of 0.1 p. The new balance-based COFIX will decrease by 0.03 p to 2.63?3.63%.
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Kookmin Bank will adjust the mortgage loan interest rate based on the new COFIX to 2.40?3.90%, and the new balance-based COFIX to 2.2?4.02%. However, although Kookmin Bank’s COFIX based on new transaction amounts slightly increased, the mortgage loan interest rate was lowered from the previous month’s 2.48?3.98% due to changes in internal interest rate factors.
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