Cofix, or the Cost of Funds Index, a benchmark lending rate for mortgage loans, came to 3.82 percent in September, up 0.16 percentage points from a month earlier, according to the data from the Korea Federation of Banks.
The government is planning to implement a loan transfer policy which turns a mortgage loan with variable interest into a loan with fixed long-term interest.
Kakao Bank, the biggest online bank, is aggressively going into the mortgage market.
For the first time, mortgage loans offering an annual interest rate below 2 percent have surfaced two months after the Korean central bank dropped the nation’s key interest rates to a historic low in the face of the coronavirus pandemic.
Korea JoongAng Daily Sitemap
