Home Business “What about the 5-6% interest rate?”… Interest rate hike, remodeling from bankbook

“What about the 5-6% interest rate?”… Interest rate hike, remodeling from bankbook

by news dir

As the era of ‘zero interest rates’, which began with the COVID-19 crisis, came to an end after 1 year and 8 months, experts said, “Housing mortgages after 3 years are converted to fixed interest rates, and when renewing credit loans, it is changed by 12 months. Choose the interest rate.” In order to save even a penny in interest, it is necessary to actively utilize the right to request rate cuts and policy mortgages, and to shorten the maturity of the deposit to three or six months as the base rate is expected to rise further next year.

For home mortgage loans with long maturities of 20 or 30 years, the hybrid type (fixed for 5 years and variable interest rate thereafter) is more advantageous than the variable rate type. This is because the COPIX 6-month floating rate product recalculates the base rate every 6 months and the increase in market interest rates is cumulatively reflected.

On the 26th, Kim Hyun-seop, head of the Dogok Star PB Center at KB Kookmin Bank, said, “The difference in interest rates between the mixed-type and variable-rate types is 0.3 to 0.4 percentage points, and the market is expecting two or three rate hikes (0.5 to 0.75 percentage points) next year.” “It is advantageous to choose a hybrid type considering the risk of a sharp rise in interest rates,” he said. He added, “After three years of receiving the mortgage, the prepayment fee is waived, so this period can be used as an opportunity to change to a hybrid type.”

For short-term credit loans and limit loans (minus bankbook), the interest rate fluctuation cycle can be selected from 3, 6, or 12 months. A bank official said, “Currently sold credit loan products have little difference in interest rates depending on the cycle of interest rate fluctuations.” It is better to choose 12 months,” he advised.

If you have been promoted at work or your annual income has risen, one of the ways to reduce the interest burden is to exercise the right to request a rate cut from a financial institution. Earlier, the financial authorities announced an improvement plan to enhance the effectiveness of the banking sector and interest rate cut request rights, which is expected to be activated in the future.

The right to request a rate cut refers to the right of borrowers to request a lower loan interest rate from the bank when their assets increase or credit condition improves. You can exercise your right to request a rate cut if you get a job without a job or move from a small and medium-sized business to a large corporation or government institution, if your position in the same workplace increases, or if you obtain professional qualifications such as a lawyer, accountant, or doctor and start working in the field. . The borrower must submit to the financial institution supporting documents such as a receipt for withholding of earned income and a certificate along with the application form. However, even if the credit condition has improved, the request for a rate cut may be rejected if the degree is insignificant or if the credit score is already high.

Policy mortgage rates for homeless people and young people are lower than commercial bank loan rates, so taking advantage of it is a way to reduce the interest burden. The Bogeumjari Loan, handled by the Korea Housing Finance Corporation (HF), is a loan product of up to 360 million won for low-income homeless or single-homeowners. The target housing is a house of 600 million won or less, and an unhomeless person with an annual income of 70 million won or less (a newly married couple 85 million won or less) or a single house owner under the condition of disposing of an existing house can apply. The interest rate of this product, which can be borrowed at a fixed rate from the execution date of the loan to maturity, is up to 3.4% based on the maturity of 40 years. Another policy mortgage ‘qualified loan’ handled by the Housing Finance Corporation has less strict requirements than the Bogeumjari Loan. Not only homeless people, but also single-homeowners can apply as a condition of disposing of their existing home. The target housing is for houses of 900 million won or less, and the maximum loan limit that can be received is 500 million won. If you receive a qualifying loan with a fixed base rate on the 1st of this month, an interest rate of 3.4% is applied.

Interest rate hikes are welcome news for retirees and others who live on deposit interest. Shinhan Bank announced on the 29th that it will raise interest rates for a total of 36 products, including term deposits and savings accounts, by up to 0.40 percentage points in accordance with the Bank of Korea’s rate hike. However, the increase in deposit interest rates is expected to proceed gradually according to the base rate hike schedule. Therefore, it is advantageous to make short-term deposits in products with short maturities of 3 to 6 months and to increase the turnover rate to receive a higher interest rate whenever the base interest rate rises. A bank official said, “Currently, the difference between the interest rates on a six-month term deposit and a one-year deposit is only 0.1 to 0.2 percentage points.

Another option is to use a high-interest parking passbook such as Toss Bank’s frequent deposit and withdrawal passbook. Toss Bank’s frequent deposit and withdrawal passbook provides an annual interest rate of 2% without any conditions, and has the advantage of being able to move funds whenever necessary.

The interest rates on deposits and savings accounts at commercial banks have risen due to two base rate hikes this year, but the interest rate on time deposits is still in the mid to high 1% range. An industry official said, “We recommend that you temporarily bury money in a high-interest parking passbook, and then move it to a savings account or savings account if the interest rate rises more than 2% per annum.”

[김혜순 기자 / 김유신 기자 / 서정원 기자]
[ⓒ 매일경제 & mk.co.kr, 무단전재 및 재배포 금지]

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