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These days, mortgage loan rates fluctuate noticeably in Korea.
Even under the same conditions, the rates can vary by 0.5–0.8%p among banks.

Major lenders such as KB, Shinhan, Hana, Woori, and NH Nonghyup offer mixed (fixed + variable), variable, and fully fixed loan types— each with its own calculation method and benchmark rate.

Therefore, simply choosing the bank with the lowest headline rate isn’t enough.
In this post, we’ll compare how each bank structures its mortgage products, review the preferential rate conditions, and highlight the differences between the nominal and effective interest rates.

Toward the end, we’ll also include expert commentary on how to choose the most suitable rate type for your situation.
Let’s dive in.

Korean mortgage rates are structured as base rate + bank spread – preferential rate.
Although the Bank of Korea has maintained its key rate, differences in funding costs and market bond yields have widened the gap among banks.

The table above summarizes the average variable and mixed loan rates for the five major banks as of October 2025, based on public disclosures and FSS data.

On average, mixed (fixed) loans remain about 0.25–0.30%p higher than variable loans, with Shinhan and Hana showing relatively stable movements.

Korean mortgage loans generally come in three types: Variable, Mixed (fixed + variable), and Fully Fixed.

Variable-rate loans change every 3–6 months along with the benchmark rate (e.g., COFIX). Mixed loans remain fixed for the first 3–5 years, then convert to a variable rate. Fixed-rate loans, on the other hand, maintain the same rate for the entire term.

In today’s market, mixed loans are the most common because they provide both short-term stability and potential long-term savings if rates fall.

However, if the market enters a prolonged period of low rates, mixed-rate borrowers may end up paying more interest than those who locked in fully fixed loans.

Although mortgage loans appear similar, each bank’s structure, benchmark rate, and preferential conditions vary significantly.

Most major banks offer mixed-rate loans tied to the 6-month COFIX index. Common preferential conditions include salary transfer, automatic payments, and credit card usage with the same bank.

Hana Bank provides faster mobile processing, while KB and Shinhan offer more generous long-term rate discounts.

Preferential rates play a major role in determining the actual mortgage interest rate.

Most Korean banks offer common discounts for salary transfer, auto payments, credit card usage, and mobile (non-face-to-face) applications.

Each bank also has its own exclusive benefits—such as KB’s Star Club, Shinhan Plus membership points, Hana Money rewards, or Woori’s WON app usage.

However, these discounts are not permanent; if requirements aren’t maintained, the preferential rate can be withdrawn the following month.

Financial experts emphasize that comparing rates alone is not enough.
Borrowers should evaluate their repayment plan, income stability, and the type of rate structure that fits their lifestyle.

Key recommendations include:
▪ Choose variable rates for short-term loans or when rates are expected to fall.
▪ Opt for fixed or mixed rates if stability is your priority.
▪ Always check early repayment fees and long-term flexibility before signing.

Remember, a 0.1%p difference can lead to millions of won in savings over time.

✅ Summary
▪ Mixed-rate loans dominate the market, averaging around 4.2–5.6%.
▪ Meeting preferential conditions can reduce your rate by up to 1.0%p.
▪ Choose based on your repayment plan and period—not just the lowest rate.
▪ Variable rates work best in a falling rate cycle, while fixed or mixed loans offer more stability when rates rise.

💬 MoneyLog Closing Comment
Interest rates are just numbers, but choosing the right one reflects your life stage and goals.
May today’s decision bring tomorrow’s peace of mind.