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Bank main loan interest rate rises Variable rate in the upper 4-5% range

A commercial bank branch in Seoul. Photo / Yonhap News

As the COFIX (Funding Cost Index) continues to rise, the floating interest rates for mortgage loans at commercial banks, which are set based on this, will be simultaneously raised.

According to the Federation of Banks on the 18th, Cofix based on new handling amount in December last year was 1.69%, 0.14 percentage points higher than in November (1.55%). This is the highest level in two years and six months since June 2019 (1.78%).

As a result, commercial banks will immediately reflect the COPIX interest rate level in December of last year in the variable rate of new mortgage loans from today.

In the case of KB Kookmin Bank, the variable interest rate for mortgage loans (based on the new Cofix) rises by 0.14 percentage points from 3.57 to 5.07 percent the previous day to 3.71 to 5.21 percent on the day.

The Nonghyup’s variable interest rate for mortgage loans (based on the new Cofix) will also be raised from 3.89-4.19% to 4.03-4.33%.

Woori Bank’s variable interest rate for mortgage loans (based on the new Cofix) is adjusted to 3.94-4.95%, up 0.14 percentage points from 3.80-4.81%.

Cofix is ​​the weighted average interest rate of funds raised by eight domestic banks, and changes in interest rates on receiving products such as deposits, savings accounts, and bank bonds actually handled by banks are reflected. If the cofix falls, it means that the bank can secure money at a lower interest rate.

The ‘new balance-based cofix’, which was newly introduced from June 2019, recorded 1.03%, up 0.09 percentage points from the previous month.

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