Demand expected to increase when the base rate normalizes
During a full-fledged rising interest rate, the ‘Housing Mortgage Loan’, which can reduce the burden of repayment of interest on borrowers, was re-launched for the first time in two years, but sales performance was low. Banks predict that demand for the product will increase if the base rate normalizes from the end of this year to the beginning of next year.
Combining the aggregation of the five major commercial banks, including KB Kookmin, Shinhan, Woori, Hana, and NH Nonghyup Bank, on the 10th, the number of sales of loans that mitigate the risk of a rise in the base rate was only 90 cases (about 18.35 billion won) until the 10th. This product, which was re-launched by the financial authorities through commercial banks on July 15, is divided into two types: fixed monthly repayment amount and upper interest rate. Compared to the total loan balance of these banks, which are worth more than 500 trillion won, it is almost zero.
In the case of an interest rate ceiling type, borrowers who issue new loans as well as borrowers who use existing floating rate loans can use the interest rate rise risk mitigation type loaner without any separate examination by signing up for a special contract with an interest rate of 0.15~0.2% points. The increase in the index interest rate, which is reflected in the calculation of the loan interest rate for five years after subscription, can be limited to 2 percentage points, and up to 0.75 percentage points per year. The fixed monthly repayment type limits the rate of increase of interest rates to 2 percentage points for 10 years.
However, it is interpreted that there are no customers who want to use the interest rate by paying 0.15 percentage points to 0.3 percentage points more than the floating rate product right now. In order to benefit from using related products, the index interest rate, which has been limited by the terms and conditions, needs to rise sharply. there is An industry insider explained, “In order to subscribe to a high-interest rate product and make a profit, the BOK needs to raise the base rate at least three times in a year.”
However, if the BOK raises interest rates and the main loan interest rate (mixed type) approaches the 6% range within the year, the increase is expected to increase.