Woori Bank Cuts Mortgage Rates by Up to 0.8% Amid Rising Interest Rates

As mortgage rates continue to rise, with the upper limit surpassing 7% annually, Woori Bank has announced additional rate cuts.

According to the financial sector on May 19, Woori Bank has reduced the interest rates on its five-year fixed-rate mortgage and variable-rate products by 0.8 percentage points and 0.3 percentage points, respectively, starting today. The bank is increasing preferential rates to lower the final loan rates.

As a result, from today, the five-year fixed-rate mortgage will offer preferential rates of up to 1.1% for both the metropolitan and non-metropolitan areas. The variable-rate mortgage will provide preferential rates of up to 0.7%.

Woori Bank had previously cut the interest rates on its Woori Apartment Loan five-year fixed-rate mortgage by 0.3 percentage points in the metropolitan area and 0.5 percentage points in non-metropolitan areas in March. Last month, the variable-rate mortgage interest was reduced by 0.4 percentage points.

The new preferential rates will be available for loan applications until June 30. Woori Bank has decided to apply higher preferential rates for new loans up to 1.5 trillion won. The same higher preferential rates will apply to variable-rate products for new loans up to 1.5 trillion won.

A Woori Bank official stated, "In light of the rapid rise in market interest rates, we are expanding inclusive finance to alleviate the interest burden on actual borrowers."

Meanwhile, other banks are also lowering their loan rates in line with the government's inclusive finance policy. On the previous day, Kakao Bank reduced the interest rates on its five-year fixed-rate mortgage and six-month variable-rate products by 0.3 percentage points each. Kakao Bank had also lowered the rates on its mortgage and mortgage refinancing products by 0.2 percentage points and 0.5 percentage points, respectively, last month.