The average annual interest rate for mortgage loans increases by more than 3%: The DONG-A ILBO

The average bank mortgage interest rate saw the largest margin increase in four years and 10 months to over three percent. This is the result of the base rate hike by the Bank of Korea and the tightening of regulations on household lending, which has led to a reduction in prime rates and an increase in additional rates by the banks. . As the interest rates on credit loans have increased by more than four percent, the interest burden on borrowers will increase further.

According to the Bank of Korea on Friday, the average annual interest rate on banks’ mortgages was 3.01% in September. This is the first time in 2.5 years since March 2019 that the interest rate has exceeded 3%. The interest rate rose 0.13 percentage points in one month, which is the largest increase since November 2016. The general credit interest rate also increased 0.18 percentage point from the previous month to 4.15%, exceeding four percent for the first time in two. years and three months.

“The base rate hike in August spilled over into market rates and banks cut their prime rates to handle loans to households,” said Song Jae-chang, head of the financial statistics team at the Bank of Korea. “According to the financial authorities’ supplementary regulations on household loans, interest rates on loans to households may further increase due to the reduction in preferential rates and the increase in additional rates.” As loan rates rose sharply this month, banks’ highest annual mortgage rate exceeded five percent.

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