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