IBK Bank Suspends Sale of Variable-Rate Mortgages at Branches

IBK Bank has temporarily suspended the sale of variable-rate mortgage loans through its branches. This measure is intended to proactively control the total volume of household loans, as demand has surged for variable-rate products, which offer lower interest rates than fixed-rate loans.

According to the financial industry on July 22, IBK Bank has temporarily halted new applications and processing of variable-rate mortgage loans at all of its branches nationwide since July 21. In-person refinancing loans, in which customers switch their loans from another bank to IBK Bank by visiting a branch, have also been restricted.

However, customers who completed consultations or applications at branches by July 20 will still be able to apply for loans until July 30. Variable-rate mortgage loans applied for through non-face-to-face channels, as well as refinancing loans using the government’s loan transfer service, can continue as usual. Products with five- and ten-year reset periods and fixed-rate mortgage loans will also remain available without interruption.

This decision appears to be driven by the recent trend where variable interest rates have fallen below fixed rates, causing demand for variable-rate mortgage loans at branches to spike. IBK Bank explained that it suspended new processing and applications for variable-rate mortgage loans at its branches to proactively manage the total volume of household loans.

This content was produced with the assistance of AI translation services.