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Mortgage loan rates in S. Korea stay below 3 pct on record-low policy rate

Xinhua, October 29, 2015 Adjust font size:

Mortgage loan rates in South Korea stayed below 3 percent, moving in the record-low range, after Bank of Korea (BOK) cut its policy rate to an all-time low, BOK data showed on Thursday.

Rates for new home-backed loans extended by banks averaged an annualized rate of 2.92 percent in September, down 0.02 percentage points from a month earlier, according to the BOK.

The mortgage rate, which was 3.34 percent in January, continued to slide after the BOK cut its benchmark interest rate by a quarter percentage point in March and June to an all-time low of 1.5 percent.

Along with eased regulations on mortgage financing, the falling rate on home-backed loans contributed to a rise in demand for housing transactions.

Rates on household debts, including mortgage loans, dipped 0.02 percentage points from a month earlier to 3.11 percent in September.

The figure for all bank loans, including corporate and household debts, averaged 3.43 percent last month, down 0.01 percentage point from the previous month. Enditem