Even during the interest rate hike period, the share of variable-rate home mortgage loans hits a 5-year high

Although the Bank of Korea raised the base interest rate and the rate hike phase has begun in earnest, the share of new mortgage loans choosing variable interest rates has risen to its highest level in five years. According to the article, as of May, the proportion of variablerate loans among new mortgage loans was 58.4%, which is interpreted as a result of increased demand from borrowers seeking to reduce their immediate interest burden since the initial rate is lower than that of fixedrate loans. However, it explained that the background behind the widening gap between fixed and variable rates lies in different base rate systems and differences in banks' funding costs. Experts advised that even if variable rates are currently lower, if interest rates rise further in the future, the overall interest burden could increase, so borrowers should make their choice while considering not only the current rate level but also the possibility of future increases.