Variable mortgage loan interest rates continue to rise... New COFIX up 0.13%p in one month (Comprehensive)

[Asia Economy Reporter Park Sun-mi] The COFIX (Cost of Funds Index), which banks use as a benchmark to calculate variable-rate mortgage loan interest rates, has risen by 0.13 percentage points in one month. Starting tomorrow, the mortgage loan interest rates applied by banks are also expected to increase.

According to the Korea Federation of Banks on the 15th, the COFIX based on new contracts in October was 1.29%, up 0.13 percentage points from 1.16% in the previous month. The outstanding balance-based COFIX also rose by 0.04 percentage points to 1.11%, and the new outstanding balance-based COFIX recorded 0.89%, an increase of 0.04 percentage points.

COFIX refers to the weighted average interest rate of funds raised by eight domestic banks including NH Nonghyup, Shinhan, Woori, SC Jeil, Hana, Industrial Bank of Korea, KB Kookmin, and Korea Citibank. It moves in response to increases or decreases in interest rates on deposit products such as actual deposits, savings, and bank bonds handled by banks. While the outstanding balance-based COFIX and new outstanding balance-based COFIX generally reflect market interest rate changes gradually, the new contract-based COFIX is calculated based on funds newly raised during the month, so it tends to reflect market interest rate changes more quickly.

As COFIX rises, the variable mortgage loan interest rates set by banks reflecting this are expected to increase simultaneously from the 16th. KB Kookmin Bank’s mortgage loan interest rates linked to the new COFIX will be applied at 3.58% to 4.78% from October 16 to November 15. Woori Bank’s mortgage loan interest rates based on the new COFIX will also change from the previous 3.31%?3.82% to 3.44%?3.95%.

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