March New COFIX at 2.81%... Down 0.01 Percentage Points from Previous Month

The Cost of Funds Index (COFIX)-the benchmark for variable-rate mortgage loans in the banking sector-experienced a slight decline in April 2026 after one month, based on newly transacted amounts. Meanwhile, the balance-based COFIX remained at the previous month’s level, while the new balance-based COFIX saw a minor decrease.

According to the Korea Federation of Banks, the COFIX based on newly transacted amounts was announced at 2.81%, a decrease of 0.01 percentage points compared to February.

The COFIX based on newly transacted amounts had climbed from 2.52% in September 2025 to 2.89% in December 2025, before fluctuating this year. In January 2026, the COFIX based on new transactions was 2.77%, and in February it was 2.82%. The balance-based COFIX stood at 2.85%, unchanged from the previous month.

COFIX is the weighted average interest rate of funds raised by eight domestic banks (KB Kookmin, Hana, Shinhan, Woori, NH Nonghyup, SC First, Citibank Korea, and IBK Industrial Bank of Korea). It reflects changes in the deposit and savings rates, as well as bank debentures, for products that banks actually handle.

When COFIX falls, banks can secure funds while paying less interest; conversely, when COFIX rises, banks must pay more interest to secure funds.

Specifically, both the new transaction-based and balance-based COFIX are calculated based on the interest rates of fixed-term deposits, installment savings, mutual installment savings, housing installment savings, negotiable certificates of deposit, repurchase agreements, promissory notes, and financial bonds (excluding subordinated and convertible bonds).

The new balance-based COFIX, introduced in June 2019, dropped from 2.47% to 2.45%, a decrease of 0.02 percentage points. The new balance-based COFIX also includes the interest rates of other deposits, borrowings, and settlement funds.

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