Interest Rate for Bogeumjari Loan to Increase by 0.10% Point Starting January

"Due to the continuous rise in medium- to long-term government bond yields, interest rate adjustments are inevitable"

[Asia Economy Reporter Park Sun-mi] Korea Housing Finance Corporation (HF) announced on the 24th that it will raise the January interest rate of the long-term fixed-rate, installment-repayment mortgage loan ‘Bogeumjari Loan’ by 0.10 percentage points.

Accordingly, the ‘u-Bogeumjari Loan’ applied for through the HF Corporation website and the ‘t-Bogeumjari Loan’ applied for at bank counters can be used at an annual interest rate of 2.35% (10-year term) to 2.60% (30-year term), depending on the loan maturity. Additionally, the ‘Akkim e-Bogeumjari Loan,’ which is applied for online through electronic contracts and reduces costs, offers interest rates 0.10 percentage points lower, ranging from 2.25% (10 years) to 2.50% (30 years) annually.

When refinancing variable-rate or lump-sum repayment mortgage loans obtained from secondary financial institutions into a better Bogeumjari Loan, the interest rates are the same as those of the u-Bogeumjari Loan or t-Bogeumjari Loan, and if an electronic contract is made, the Akkim e-Bogeumjari Loan interest rate applies. Socially disadvantaged groups (single parents, persons with disabilities, multicultural families, families with three or more children) or newlyweds can receive additional interest rate benefits.

An HF Corporation official stated, “The adjustment of Bogeumjari Loan interest rates was inevitable due to the continuous rise in the mid- to long-term government bond rates, which are the benchmark rates for long-term fixed-rate loans. However, the increase was minimized to alleviate the burden on low-income and actual demand borrowers.”

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