Cofix drop in new handling amount… The interest rate seems to be slightly lowered

Cofix (COFIX, financing cost index), which is the basis for calculating the rate of mortgage loans, has turned downward. As a result, there is a high possibility that the interest rate for the floating rate type of commercial banks will also decrease slightly.

Co-fix, based on the new handling amount in January, announced by the Federation of Banks on the 15th, fell 0.04 percentage points from 0.86%. It is the eighth month since last June (0.89%) that Cofix has remained at the 0% level based on the amount of new handling. The balance-based co-fix also decreased by 0.04% points during the same period to 1.13%, and the new balance-based co-fix recorded 0.9%, down 0.03% points from the previous month.

COPIX is a weighted average interest rate of funds raised by eight domestic banks (Nonghyup, Shinhan, Woori, SC Cheil, Hana, Corporate, Kookmin, and Citibank Korea). When interest rates rise or fall, they rise or fall reflecting this. In particular, since the cofix based on the new handling amount is calculated for the funds newly raised in the month, changes in market interest rates are immediately reflected.

Co-fixes based on new handling amounts and co-fixes based on balances include periodic deposits, periodic deposits, mutual installments, housing installments, transferable deposit certificates, repurchase conditional bond sales, cover note sales, and financial bonds (excluding subordinated bonds and convertible bonds). In addition, interest rates such as other deposits, other borrowings, and settlement funds are also reflected in the new balance standard.

Balance-based co-fixes and new balance-based co-fixes generally reflect market interest rate fluctuations gradually, but new handling amount-based co-fixes are calculated for newly raised funds during the month, so the market interest rate fluctuations are relatively quickly reflected.

The fact that Cofix declined last month based on the new handling amount means that the cost of financing by banks has decreased. Accordingly, it is highly likely that the interest rate for variable-rate mortgage loans will fall.

An official of the Bank Federation said, “If you want to receive a cofix linked loan, you need to carefully select the loan product after understanding the characteristics of Cofix.”