<Anchor> This is a
friendly economic time. Today (the 4th), I will be with reporter Kim Hye-min. I'm going to talk a little bit about interest rates today, but interest rates are going up a lot these days, really.
<Reporter>
I also received a text message a few days ago that the interest rate on home mortgage loans has risen. Last year, it was in the low 2% range, but now it is close to 3%.
I've heard a lot about loan interest rates being raised, but I'm worried because I've been through this myself. However, these days, the interest rate is higher for those who want to get new loan from the bank.
As of the beginning of this month, the floating rate is 3.3% to 4.8% per annum. Fixed rates are more expensive. It has risen from the high 3% to a maximum of 5.3%.
About 1 percentage point in two months, more than doubled compared to a year ago. Even in the case of credit loans, it is currently in the mid 3% to mid 4% range.
On the 25th of this month, the Bank of Korea holds a meeting of the Monetary Policy Committee and decides whether to raise the base rate again. Then, at the end of the year, the loan interest rate could go up to 6%.
<Anchor>
Interest rates are really going up a lot. But why are interest rates so high?
<Reporter>
There are two factors working together. This is because of the 'base rate hike' and the 'loan restraint policy'. Although the ultra-low interest rate trend has continued for a long time worldwide due to the Corona 19, recently, countries are taking measures to recover liquidity.
There was also a tapering that was announced in the US this morning. Until the middle of this year, Korea had maintained the base rate at 0.5%, but in August, the Bank of Korea raised the base rate by 0.25%.
In addition, the financial authorities are tightening household loans. Banks are raising interest rates by reducing the preferential interest rate benefits and raising the additional interest rate, but the government tolerates this because it helps reduce loans.
Therefore, the extent of interest rate hikes experienced by actual borrowers is much steeper.
<Anchor> That's
right. The base interest rate set by the Bank of Korea is also rising, and in particular, the virtual interest rate set by the banks at their own discretion is also increasing. But what I'm curious about is that there are a lot of people who already have loans. But do these people need to switch to a fixed rate because interest rates rise? Or should I just leave the floating rate alone?
<Reporter>
First of all, I wonder if the anchor has a loan with a variable interest rate.
<Anchor>
Of course, I also have a loan. I also got a loan with a variable interest rate.
<Reporter> That's
right. In most cases, this is a floating rate. I was able to get this right because the majority of Koreans have floating rate loans.
Of those who took out new household loans from banks in September, only 21% of them had a fixed interest rate. The floating rate is 78%.
When interest rates rise like now, those who signed up for a variable rate should switch to a fixed rate.
There are a few things to consider at this point. First, you need to look at the 'interest rate difference'. During a period of rising interest rates like now, the rate of rise of fixed rates is much faster than that of floating rates.
For example, the current fixed rate is about 0.6 percentage points higher than the variable rate. This is not a small number, because each time the base rate rises, it rises by 0.25 percentage points.
Bank officials said, "The base rate will rise more than three times in the next year."
<Anchor>
I think this will be helpful, but I think it will be a bit of a standard, "It will rise more than 3 times a year. But it won't be" This might be one of the criteria you can choose. Lastly, from next year, the DSR will also be reduced.
<Reporter>
You are also subject to DSR limits when you convert a loan from a floating rate to a fixed rate.
This is because it is considered a product change and is subject to the regulations that apply to new loans.
The more stringent DSR regulations recently announced by the government will start early next year.
From then on, the limit of the loan may be lower than the previous loan limit when receiving a repayment loan for those who have a lot of debt compared to their earned income.
So, if you are going to get a repayment loan, it is much more advantageous to do it within the next two months.
Another prepayment fee must be taken into account.
In general, if you change to another loan before the three-year contract period for a home mortgage loan, you will have to pay a fee of 1% to 1.5%.