Bank Mortgage Loan Variable Interest Rate Benchmark COFIX Rises 0.06%p in One Month

COFIX Based on New Transactions 1.70%
Based on Outstanding Balance 1.44% - New Based on Outstanding Balance 1.13%

[Asia Economy Reporter Yu Je-hoon] The COFIX (Cost of Funds Index), which serves as the benchmark for variable interest rates on mortgage loans in the banking sector, has risen by 0.06 percentage points.

According to the Korea Federation of Banks on the 15th, the COFIX based on new loan amounts last month was 1.70%, up 0.06 percentage points from the previous month. The outstanding balance-based COFIX increased by 0.07 percentage points to 1.44%, and the new outstanding balance-based COFIX rose by 0.05 percentage points to 1.13%.

Commercial banks will reflect the COFIX rate level announced for last month in the variable interest rates on new mortgage loans starting from the 16th.

COFIX is the weighted average interest rate of funds raised by eight domestic banks (KB Kookmin, Shinhan, Hana, Woori, Nonghyup, Industrial Bank of Korea, SC First Bank, and Korea Citibank), reflecting changes in interest rates of deposit products such as actual deposits, savings, and bank bonds handled by the banks, causing it to rise or fall accordingly.

For the outstanding balance-based and new outstanding balance-based COFIX, market interest rate changes are generally reflected gradually, but the COFIX based on new loan amounts is calculated based on funds newly raised in the current month, so market interest rate changes are reflected relatively quickly.

Meanwhile, the short-term COFIX announced over the past four weeks was surveyed at 1.54% to 1.62%. The short-term COFIX is calculated based on short-term funds with a contract maturity of three months.

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