BNK Busan Bank Lowers Interest Rate Cap for Mortgage Loans by 0.5%p

Busan Bank Headquarters.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] BNK Busan Bank announced on the 27th that it will revamp the ‘BNK Interest Rate Cap Mortgage Loan’ product to ease the burden of rising loan interest rates for customers.

With the revamp, the annual interest rate cap for new customers of the ‘BNK Interest Rate Cap Mortgage Loan’ has been lowered from 0.75%p to 0.50%p.

The ‘BNK Interest Rate Cap Mortgage Loan’ is a mortgage loan product that sets an interest rate cap to reduce the risk of medium- to short-term interest rate increases.

Even if the base interest rate rises within 5 years after the loan is issued, the maximum interest rate increase can be limited.

Busan Bank decided to adjust the interest rate cap of the ‘BNK Interest Rate Cap Mortgage Loan’ product and extend the loan maturity for new customers from the existing 30 years to a maximum of 40 years.

Lee Soo-chan, Head of Credit Sales Division at Busan Bank, said, “As the market base interest rate is on the rise, we decided to revamp the interest rate cap mortgage loan and expand special preferential interest rates to reduce the principal and interest repayment burden on customers. We will continue to find ways to lower the repayment burden for customers using Busan Bank during periods of rising interest rates.”

Since the 1st of this month, the special preferential interest rate for ‘2022 Housing-Related Loan Special Sale’ on mortgage loans with a DSR (Debt Service Ratio) of 40% or less and new jeonse deposit loans has been expanded from 0.30%p to 0.50%p.

As a result, as of July 22, 2022, the minimum variable interest rate applied is 3.81% per annum for mortgage loans and 3.79% per annum for jeonse deposit loans.

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