S.Korean banks' mortgage loan rate hits record low in November

Source: Xinhua | 2020-01-01

South Korean banks' mortgage loan rate hit a record low last month after the policy rate cut, central bank data showed Tuesday.

The rate for fresh home-backed loans, extended by banks, averaged an annualized rate of 2.45 percent in November, down 0.05 percentage points from the previous month, according to the Bank of Korea (BOK).

It was the lowest since the BOK began compiling the data in September 2001.

The BOK lowered its benchmark interest rate to a record low of 1.25 percent in October, after slashing it from 1.75 percent to 1.50 percent in July.

The rate for the entire household loans by banks came in at an annualized rate of 2.96 percent in November, down 0.05 percentage points from a month earlier.

The rate for corporate loans inched up 0.01 percentage point to 3.29 percent in the month.

The rate for all loans, extended by banks to households, companies and the public sector, fell 0.02 percentage point from a month earlier to 3.18 percent last month.

It was the lowest since the central bank began compiling the data in January 1996.