Written by 11:05 AM Economics

Mortgage interest rates on starter homes and mid-sized homes are set to increase by up to 0.4%.

The government has decided to raise the interest rates on policy loans to curb the rise in housing prices.

The Ministry of Land, Infrastructure and Transport announced that starting from the 16th, it will increase the interest rates on ‘Deduction’ and ‘Support Beam’ loans by up to 0.4 percentage points.

In response to concerns about a surge in household loans due to increased demand for low-interest policy loans, the decision to raise interest rates was made to control the demand.

The Ministry of Land, Infrastructure and Transport also announced that it will raise the interest rates on subscription savings by up to 0.3 percentage points to a maximum of 3.1% next month, reflecting feedback that the interest rates are insufficient compared to commercial banks.

Previously, the Ministry of Land, Infrastructure and Transport announced that it would increase the monthly recognized contribution amount for subscription savings from the existing 100,000 won to 250,000 won.

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