Bank lending rates on mortgages fall in April after 6-month upward trend

Banks' household mortgage loan rates fell in April, ending a six-month upward trend, amid tighter regulations aimed at stabilizing the housing market, data showed Friday.

venerdì 29 maggio 2026 New tab

TL;DRAI

Korean bank mortgage rates fell 0.03 percentage points in April, ending a six-month upward streak driven by government tightening on home purchase loans to cool the property market. For macro-aware tech managers, the BOK's seventh consecutive rate hold signals sustained tight credit conditions in South Korea, with limited near-term relief on corporate borrowing costs (flat at 4.2%).

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An advertisement for a mortgage loan hangs in front of a financial institution in Seoul on May 24. [YONHAP]

Banks' household mortgage loan rates fell in April, ending a six-month upward trend, amid tighter regulations aimed at stabilizing the housing market, data showed Friday.

The average interest rate on new bank loans stood at 4.2 percent last month, unchanged from a month earlier, according to the data from the Bank of Korea (BOK).

The average rate on corporate loans also stayed flat at 4.2 percent, while the rate on new household loans dropped 0.08 percentage point to 4.43 percent.