Mortgage Loan Interest Rates Head Toward 8%... KOPIS at Record High of 3.98%

New Handling Amount 기준 COFIX 3.98%
0.58%p Increase Compared to Previous Month

The Bank of Korea raised the base interest rate by 0.5 percentage points, and the real estate transaction market is expected to experience a prolonged winter. On the 13th, a red light was on at a traffic signal near an apartment in downtown Seoul.

[Asia Economy Reporter Sim Nayoung] From the 16th, loan interest rates will rise once again, pushing the variable interest rates on mortgage loans at commercial banks beyond 7% and close to the 8% range. This is because the COFIX (Cost of Funds Index) based on new transaction amounts, which is the standard for calculating loan interest rates announced by the Korea Federation of Banks on the 15th, has risen sharply, and that shock is directly absorbed into the interest rates.

The COFIX based on new transaction amounts rose to 3.98%, an increase of 0.58 percentage points (p) compared to the previous month. This is the highest level ever recorded since the COFIX interest rate was first announced.

The outstanding balance-based COFIX (based on the outstanding balance at the end of October) rose to 2.85%, up 0.33%p from the previous month, and the new outstanding balance-based COFIX (based on the outstanding balance at the end of October) rose to 2.36%, up 0.32%p from the previous month.

COFIX is the Cost of Funds Index calculated as the weighted average of funding costs from eight major banks. It is calculated by weighting the new transaction amounts of eight items, including savings deposits and bank bonds. In other words, when the interest rates on savings deposits and bank bonds rise → COFIX rises → mortgage loan variable interest rates, jeonse deposit loan interest rates, and credit loan interest rates all follow suit.

From the 16th, major banks are expected to raise interest rates by reflecting the increase in the October new COFIX, which will further increase the burden on borrowers.

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