Shinhan Bank will raise mortgage interest rates by up to 0.5 percentage points from the 16th.

Shinhan Bank will increase home mortgage loan interest rates by an additional 0.5%. This is the fifth increase in home loan interest rates in the last month.

Shinhan Bank announced on the 12th that it will increase interest rates for prime mortgages, rental investment loans, and refinancing loans (transition loans) by up to 0.5% points starting from the 16th.

The 5-year mortgage loan, which is popular among real consumers, will increase by 0.35% points, while the variable mortgage loan with interest rates that change every 6 months and the 10-year mortgage loan that have been recently launched 0.3% point. .

Considering the 5-year quarterly mortgage interest rate (3.28-5.29% per annum) as of today, the minimum interest rate is also expected to rise to the late 3% per annum range. The maximum interest rate for variable mortgage loans (4.30-5.91% per annum) has now exceeded 6% per annum.

Investment loans are also adjusted up by 0.20 to 0.35 percentage points depending on the guarantee institution (Korea Housing Finance Corporation and Seoul Guarantee Insurance) and bond maturity. In the case of transfer loans, the main loan will be increased by 0.5% points, and the rental loan will be increased by 0.2-0.3% points.

A Shinhan Bank official explained the reason for the interest rate increase: “It is because there is a need for loan stability management due to the rapid increase in household debt.”

Shinhan Bank previously raised the standard interest rate for 3-year and 5-year bank bonds by 0.05 percentage points on the 15th and 22nd of last month, and also raised the interest rate on home mortgage loans by up to 0.3 percentage points on the 29th . On the 7th of this month, the mortgage loan interest rate was also increased by 0.3 percentage points. Including this interest rate increase, loan interest rates have increased five times in just over a month.

As the increase in home loans has not slowed down, banks continue to increase interest rates on home loans.

The balance of home loans from the five major banks, including Kookmin Shinhan Hana and Woori Nonghyup, was 718.213 trillion won on the 8th, an increase of 2.4747 trillion won in 8 days from the end of July ( 715.7383 trillion won).

Reporter Kim Bo-hyung [email protected]