Despite the government warning that house prices will fall soon, apartment prices in the metropolitan area are still on the rise. Loan interest rates have risen as high as before the corona virus, but they are expected to rise further, so I am worried about the burden on borrowers.

Reporter Im Tae-woo on the sidewalk.


Mr. Yoo, who extended the maturity of a mortgage loan worth 180 million won last month.

Interest rates jumped from 2 to 2.5% despite no change in credit rating.

This is due to the fact that banks, which are trying to tighten up household loans, have drastically reduced their preferential interest rates.

[Mo. Yoo / Mortgage Loan Subscriber: I raised the (loan interest rate) to 2.5% for no reason. In my case (monthly repayment) is about 300,000 won, but now it's up to 400,000 won.]

Shinhan Bank's mortgage interest rate has risen by about 0.5%p in the past two months, and the interest rate on jeonse loan by 0.24%p, Hana Bank's non-face-to-face credit loan interest rate also rose by 0.35%p.

Last month, the average interest rate on new household loans by financial institutions was 2.92% per annum, the highest since the outbreak of COVID-19 in January last year.

In addition, as monetary and fiscal authorities announced one after another to raise the base rate, and banks are reducing preferential rates to reduce the total amount of loans, there are many observations that the upward trend in interest rates will continue.

Nevertheless, the national median price of comprehensive housing has risen about 9% in the past year and 5% in Seoul, and the nationwide apartment buying sentiment is rekindling.

The rise in house prices remains the same, but only the loan interest rate rises.

[Park Won-gap / Senior member of KB Financial Group: Expectations for house price increase have not yet been broken, and since the price of jeonse is expensive, there are many people who want to buy a small house. The slowdown in demand due to the increase in loan interest rates has not yet appeared significantly.] With the

prospect of raising the base rate immediately at the MPC meeting in August, there are concerns that the burden on borrowers who bought houses with debts will increase.

(Video editing: Kim Seon-tak)