IBK, 10-Year Fixed Rate 'IBK Long-Term Fixed Mortgage Loan' Sales

Up to 500 Billion KRW Limit
Loan Term Up to 40 Years... Fixed Interest Rate Period Selectable Between 5 or 10 Years

[Asia Economy Reporter Yu Je-hoon] IBK Industrial Bank announced on the 23rd that it will sell the 'IBK Long-term Fixed-rate Mortgage Loan' product, which applies a fixed interest rate for 10 years, with a limit of 500 billion KRW starting from the 24th.

According to IBK, the loan period for this product is up to 40 years, and customers can choose a fixed interest rate period of either 5 or 10 years. The loan target is customers who provide their house as the first priority collateral (by setting a mortgage lien) to IBK. From the month following the loan disbursement, the product requires repayment of the principal or equal installments of principal and interest without a grace period.

The loan interest rate ranges from 4.25% to 5.15% per annum when applying a discount rate of up to 0.90 percentage points depending on transaction performance, and the prepayment penalty is waived if repayment is made within 10% of the outstanding balance at the end of the previous year.

An IBK official said, “This product, which extends the fixed interest rate period of mortgage loans up to 10 years, is expected to greatly help low-income households secure stable housing and reduce financial burdens during the period of rising interest rates.”