@article{ART003187133},
author={Lim, Hyun Joon},
title={Determinants of Household Mortgage Loan Interest Rate Types},
journal={Korea Real Estate Review},
issn={2092-5395},
year={2025},
volume={35},
number={1},
pages={75-91}
TY - JOUR
AU - Lim, Hyun Joon
TI - Determinants of Household Mortgage Loan Interest Rate Types
JO - Korea Real Estate Review
PY - 2025
VL - 35
IS - 1
PB - korea real estate research institute
SP - 75
EP - 91
SN - 2092-5395
AB - This study analyzes the factors influencing households’ choice between fixed- and variable-rate mortgage loans. Panel bivariate probit modeling was used to analyze data from the 2012–2023 Household Financial and Welfare Survey. Estimation results indicated that the probability of selecting a fixed-rate mortgage is low for households where the heads are in their 30s and 40s and with several employed household members and children. Conversely, households with large asset holdings, low debt levels, and low regular income are highly likely to opt for fixed-rate loans. Furthermore, a high debt–service ratio (DSR) is associated with a high probability of selecting a variable-rate mortgage. DSR represents the burden of principal and interest repayments on an existing debt. A country-level panel dataset was utilized to assess the impact of macroeconomic variables. Findings suggested that the share of fixed-rate mortgages tends to increase as the term spread narrows, GDP growth declines, consumer price inflation rises, and housing price growth slows. Additionally, high inflation volatility weakens the inflation-induced preference for fixed-rate loans.
KW - Bivariate Probit Model;Fixed-rate Mortgage;Household Financial and Welfare Survey
DO -
UR -
ER -
Lim, Hyun Joon. (2025). Determinants of Household Mortgage Loan Interest Rate Types. Korea Real Estate Review, 35(1), 75-91.
Lim, Hyun Joon. 2025, "Determinants of Household Mortgage Loan Interest Rate Types", Korea Real Estate Review, vol.35, no.1 pp.75-91.
Lim, Hyun Joon "Determinants of Household Mortgage Loan Interest Rate Types" Korea Real Estate Review 35.1 pp.75-91 (2025) : 75.
Lim, Hyun Joon. Determinants of Household Mortgage Loan Interest Rate Types. 2025; 35(1), 75-91.
Lim, Hyun Joon. "Determinants of Household Mortgage Loan Interest Rate Types" Korea Real Estate Review 35, no.1 (2025) : 75-91.
Lim, Hyun Joon. Determinants of Household Mortgage Loan Interest Rate Types. Korea Real Estate Review, 35(1), 75-91.
Lim, Hyun Joon. Determinants of Household Mortgage Loan Interest Rate Types. Korea Real Estate Review. 2025; 35(1) 75-91.
Lim, Hyun Joon. Determinants of Household Mortgage Loan Interest Rate Types. 2025; 35(1), 75-91.
Lim, Hyun Joon. "Determinants of Household Mortgage Loan Interest Rate Types" Korea Real Estate Review 35, no.1 (2025) : 75-91.
