Tomorrow, Variable Interest Rate on Mortgage Loans to Increase by 0.15%p... KOPIS Hits Highest Level This Year

The government announced the "Housing Market Stabilization Plan," which includes strengthening the comprehensive real estate tax on high-priced housing and regulating mortgage loans for apartments priced over 1.5 billion won in speculative and overheated speculation areas. On the 17th, a price list was posted at a real estate agency office in Songpa-gu, Seoul. Photo by Kang Jin-hyung aymsdream@

The COFIX (Cost of Funds Index), which serves as the benchmark for banks' variable-rate mortgage loans, has reached its highest level this year.

On the 15th, the Korea Federation of Banks announced that the COFIX based on new contracts in October rose by 0.15 percentage points from the previous month (3.82%) to 3.97%.

The increase in the COFIX rate will be reflected starting from the 16th, and banks' variable mortgage loan rates are expected to rise by 0.15 percentage points compared to the 15th.

The COFIX based on outstanding balances at the end of October was 3.90%, up 0.02 percentage points from the previous month (3.88%). The new outstanding balance-based COFIX was 3.33%, an increase of 0.04 percentage points from the previous month (3.29%).

COFIX is the weighted average interest rate of funds raised by eight domestic banks. When deposit rates or bank bond rates rise or fall, COFIX also rises or falls accordingly.

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