Credit ↑ Mortgage ↑… Interest-bearing snowball | Save Internet New Daily

Bank household loan interest rates are rising rapidly. With US Treasury yields rising, credit loan regulations overlap.

The burden of consumers who jumped into the procession of ‘Young Cull (grabbing even the soul)’ and ‘Debt investment (receiving loans)’ is expected to increase.

According to the financial sector on the 28th, four commercial banks, including KB Kookmin, Shinhan, Hana, and Woori Bank, have credit loan interest rates of 2.59~3.65% per year as of the 25th. Compared to the 1.99~3.51% at the end of July last year, when the interest rate was at the bottom, the minimum interest rate has increased by 0.6 percentage points.

Credit loan interest rates are based on bank bonds of 6 months and 1 year. A rise in bank bond yields also affects the rise in credit loan rates.

The reason is that banks have reduced preferential interest rates by more than 0.5 percentage points as financial authorities tightened credit loans in earnest since October last year. For those who borrow 200 million won as a credit loan, if the interest rate rises by 0.5 percentage points, the annual interest burden increases by 1 million won.

Mortgage interest rates are also on the rise. According to the’weighted average interest rate for financial institutions in January 2021′ released by the Bank of Korea, the interest rate for mortgage loans reached 2.63%, the highest in one year and six months.

It has risen by 0.04 percentage points from the previous month for the fifth month. The recent rise in US Treasury yields and the movement to expand government fiscal expenditures reflects the impact of rising mid- to long-term Treasury yields.

The four major banks’ interest rates on mortgage loans as of the 25th were 2.34~3.95% per year, up 0.09 percentage points from the end of July last year (2.25~3.95%). The variable interest rate for mortgage loans mainly follows COFIX (COFIX, financing cost index), which indicates how much money was spent on financing for loans by eight domestic banks.

The COPIX applied by banknotes in February (as of January) is 0.86% based on the new handling amount. It is 0.05 percentage points higher than last July (0.81%). In particular, the fierce competition between banks to attract deposits, such as competition between Internet-specialized banks and traditional banks, has affected COPIX and the rise in mortgage interest rates.

The 10-year Korean Treasury Bond yield, which serves as a leading indicator of household loan rates, was 1.960% per year on the 26th, the highest since March last year. On the 25th (local time), the 10-year U.S. Treasury Bond interest rate also rose to 1.61% during the intraday, reaching the highest level in a year since February last year.