<Anchor>
This is a time to give useful information to life. Let's start with a friendly economy. Today (16th), I will be with reporter Kim Hye-min. Did you hear that a new mortgage loan product was launched by commercial banks from yesterday?
<Reporter>
That's right. When you buy a house, you usually get a mortgage from the bank. When you go to apply, you have to choose whether to use the variable type, in which the interest rate changes continuously, or the fixed type, even if you pay a slightly higher interest from the beginning.
When interest rates are expected to rise, they often choose a fixed type, and if they are similar or likely to fall, they often choose a variable type. .
It's a special form. It has been on sale since yesterday. It was difficult for me to choose between the variable type and the fixed type when I was receiving a loan, but I was also worried about whether or not to sign up for the special contract this time as well.
<Anchor> That's
right. But just by hearing the name, it reduces the risk a bit if interest rates rise suddenly. This feeling is strong. But can you explain in a bit more detail what it is?
<Reporter>
It is very similar to what you said now, but among mortgage loans, fixed interest rates are not considered because the interest rates are fixed anyway.
There is a risk that interest rates will rise as interest rates rise only on floating products. In order to reduce this risk, people who have already borrowed a variable type loan or those who are now receiving it can use this special contract.
There are two types of interest rate rise risk mitigation types: the 'upper rate limit type' and the 'fixed monthly repayment type'. Among the two, the product to pay attention to is the upper interest rate type.
By subscribing to this special contract, the main loan interest rate increase can only go up to 0.75 percentage points for one year and 2 percentage points for five years. It won't just give you benefits. The interest rate on the existing main loan is slightly higher.
Commercial banks generally charge 0.15 percentage points in interest rates to those with three to five years remaining on the loan. If there is more than 5 years remaining, an additional 0.2% point is added.
However, when receiving the main loan, the loan period is usually from 20 to as long as 30 years, so in most cases 0.2 percentage points will be added.
<Anchor>
Then, reporter Kim, is it good to take this special contract in the current situation?
<Reporter>
This is actually the one I was most curious about, but which one is more advantageous because you don't know how much the base rate will rise in the future. I can't give you this certainty. However, you can compare how much interest rates need to rise to see if it is better to sign up for this special contract.
Under the special contract, interest rates can only be increased by up to 0.75 percentage points per year. In addition, the interest rate that is added to the existing interest rate should also be taken into account.
It is better to subscribe because the interest rate on the main loan that is not subscribed to the special contract is higher than the interest rate that is 0.75% point plus up to 0.2% point. So, how much interest rates rise in the future will matter.
It is the Cofix that affects the interest rate on the main loan. It is the base interest rate that affects the Cofix, and this time, Governor Lee Ju-yeol of the Bank of Korea kept giving the market a notice to raise the base rate.
As it is expected that the rate will increase by 0.25% at the end of this year and once more at the beginning of next year, voices are coming out to prepare for a rate hike.
Experts believe that it is not easy to predict a rise of more than 0.75 percentage points in a year because the market perceives a 0.5 percentage point increase in one year as a large fluctuation.
<Anchor> That's
right. So this is reporter Kim. I think interest rates will go up. However, since interest rates do not rise much in a short period of time, it raises the question of whether it is really efficient. Do many sign up?
<Reporter>
It's just starting to sell, so we'll have to wait and see, but there weren't many inquiries about this product from commercial banks.
If the base interest rate is expected to rise sharply, many would sign up for it, but in fact, it is a difficult situation right now. Yesterday, the Bank of Korea frozen the base rate at 0.5% again.
Although we left the possibility of a raise within this year, it would be a bit burdensome to raise interest rates right away next month as the 4th COVID-19 pandemic has just begun.
Even if interest rates rise, the outlook is favorable. In addition, this product came out once in 2019, but it was not well received, so it was discontinued.
Even so, if there are people who want to be prepared for a sudden rise in interest rates, it is recommended that you sign up for an insurance policy.