As market interest rates rise, mortgage loan rates are also expected to climb. KB Kookmin Bank said it will raise mortgage loan hybrid (fixed-plus-variable) rates by 0.15 percentage point starting on the 19th. Woori Bank and others also plan to reflect the increase in market rates in mortgage loan rates.
According to the financial sector on the 18th, as of the 16th, the mortgage loan hybrid (fixed) rates at KB Kookmin, Shinhan, Hana and Woori Bank were 4.13% to 6.297% per year. Compared with Dec. 5 last year (4.12% to 6.2%), the bottom rose 0.01 percentage point and the top rose 0.096 percentage point. The top end of hybrid rates has been steadily rising since it surpassed 6% in Nov. last year.
Variable rates fell somewhat to 3.76% to 5.64%. The bottom end of the variable rates (3.76%) is at Shinhan Bank. This reflects Shinhan Bank's benefit of a 0.5 percentage point rate cut for Seoul's exemplary taxpayers as the operating bank of the Seoul city treasury. The lowest rates at other banks are in the 4.07% to 4.34% range. For now, mortgage loans in the 3% range have effectively disappeared.
With the five-year financial bond yield, the benchmark for mortgage loan hybrid rates, moving higher, the rise in the lending rate is unlikely to ease. The Bank of Korea's monetary policy committee kept the base rate unchanged on the 15th and removed the phrase "possibility of a rate cut" from its statement. The five-year bank bond yield rose 0.083 percentage point, from 3.497% the day before the Monetary Policy Board meeting to 3.58% the next day.