Where Will It Stop? Mortgage Rates Are Rising Again

Here is the first piece of useful news.

Mortgage loan rates are on the rise once again.

This means that borrowers are facing a heavier interest burden.

Recently, the variable mortgage rates at the five major commercial banks have climbed up to the upper 6 percent range per annum.

Let us assume the interest rate is 7 percent per annum.

If you borrow 500 million won, excluding the principal, the monthly interest alone reaches approximately 2.92 million won.

Compared to when the rate was 5 percent, this is an increase of about 830,000 won per month, or around 10 million won a year.

With COFIX, the benchmark for variable rates, also rising, projections indicate that the burden on variable-rate borrowers could grow even further.
※ Please note: This article was translated by AI and may contain errors.