The Korea Federation of Banks announced on the 31st that the stress interest rate applied when calculating the household debt service ratio (DSR) for household loans in the first half of next year will be 0.75 percentage points.
For mortgages handled by banks in the capital region, 1.20 percentage points will be applied.
This is the same level as the stress interest rate for the period of September to December this year.
The stress interest rate is an additional charge reflected in the loan limit calculations, considering the possibility that the borrower may face increased interest repayment burdens due to rising interest rates during the loan usage period. It is not reflected in the actual loan interest rate.
The stress interest rate is calculated as the difference between the peak monthly weighted average interest rate for household loans over the past five years (announced by the Bank of Korea) and the current rate, with a ceiling of 3.0 percentage points and a floor of 1.5 percentage points established to adjust for potential over or underestimations during rate fluctuation periods.
The Korea Federation of Banks announces the stress interest rate every June and December.