▲ Mortgage Loan Products
The COFIX (Cost of Funds Index), which serves as the benchmark for variable interest rates on bank mortgage loans, has risen for the second consecutive month.
According to the Korea Federation of Banks on June 15, the new COFIX for May was recorded at 2.90%, up 0.01 percentage points (p) from April (2.89% per annum).
This follows a 0.08%p increase in March, marking two straight months of growth.
The balance-based COFIX also rose by 0.02%p, from 2.87% to 2.89% per annum.
COFIX is the weighted average interest rate of funds raised by eight domestic banks, reflecting changes in the interest rates of deposit products such as time deposits, installment savings, and bank bonds that banks actually handle.
A decline in COFIX means that banks can secure funds at lower interest costs.
Conversely, when COFIX rises, banks must pay higher interest.
As COFIX has risen for two consecutive months, variable interest rates on new mortgage loans from banks are expected to increase accordingly.
The new COFIX and the balance-based COFIX are calculated based on the interest rates of deposit products, including time deposits, installment savings, mutual installments, housing installments, certificates of deposit (CDs), repurchase agreements (RPs), cover bills, and financial bonds (excluding subordinated bonds and convertible bonds).
The "new balance-based COFIX," introduced in June 2019, rose from 2.49% to 2.50% per annum.
The new balance-based COFIX also includes interest rates on other deposits, borrowings, and settlement funds.
▲ Korea Federation of Banks COFIX Announcement
(Photo: Provided by Korea Federation of Banks, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.