Korea’s annual mortgage rates hit 7% for the first time in 9 months

[Image source: Gettyimagesbank]

Annual mortgage rates in South Korea hit the 7 percent level again for the first time in nine months. According to the financial circle on Sunday, the interest rates on variable mortgage loans at KB, Shinhan, Hana, and Woori Banks as of Thursday were between 4.270 and 7.099 percent annually, with the highest rate topping 7 percent. The most expensive “Hana Apartment Loan” had a maximum rate of 7.099 percent, the highest in nine months since hitting 7.603 percent in December 2022.

Banks’ lending rates are rising as the monetary tightening in the United States will likely last longer than initially expected. The highest hybrid mortgage rate of bank loans with a 5-year maturity was up 0.219 percentage points from the end of August and the lowest up 0.070 percentage points. The highest and lowest credit loan rates offered to borrowers with the highest credit score with a one-year maturity also increased by 0.140 percentage points each during the same period.