Financial sector resumes eligible loans in the second quarter… Highlighting the advantages of fixed interest rates in the 3% range

Hana Bank will start selling eligible loans from the 5th. The Korea Housing Finance Corporation sets a total limit for eligible loans for one year and distributes them to sales finance companies. The photo is from a branch in Seoul that day. [연합뉴스]

As financial institutions resume sales of qualifying loans, which are long-term fixed-rate products, in the second quarter, the interest of end-users of mortgage loans (main loan) during a period of rising interest rates is focused.

A qualifying loan is a loan product that repays the principal and interest every month at a fixed interest rate during the maturity of a 10- to 40-year contract. When a bank issues a loan under certain conditions, the Housing Finance Corporation purchases the loan assets.

Compared to the policy product, Bogeumjari Loan, the subscription threshold is lower, the loan limit is higher, and the loan interest rate of 3.95% per annum is highlighted. On the other hand, KB Kookmin, Shinhan, Hana, and Woori Bank’s variable interest rates for mortgage loans (linked to new Cofix) as of one day are 3.550 to 5.236% per year.

According to the financial industry on the 4th, NH Nonghyup Bank and Hana Bank resumed sales of eligible loans in the second quarter. Among the five major commercial banks, Woori Bank started selling eligible loans for the first time in the second quarter on the 1st. As of the morning of the 4th, Woori Bank had exhausted regarding 35% of its sales limit for the second quarter, which was around 100 billion won.

It is also reported that Hana Bank will start accepting loan applications from the morning of the same day, mainly for customers who have received inquiries from branches in advance. Hana Bank’s second quarter limit is known to be around 250 billion won.

A commercial bank official explained, “Usually, on the first day of resuming sales, the speed of exhaustion is quick.”

As of this month, 13 eligible lending institutions are SC Cheil, Enterprise, Nonghyup, Suhyup, Woori, Hana, Gyeongnam, Gwangju, Busan, Jeju Bank, Samsung, Kyobo, and Heungkuk Life. KB Kookmin Bank is also considering resuming the sale of eligible loans. A Kookmin Bank official said, “The specific timing of the resumption of sales is undecided.”

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Minji Seo

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