Housing Finance Corporation Raises May Bogeumjari Loan Interest Rate by 0.45 Percentage Points

Standard interest rate table by product and maturity for the Bogumjari Loan as of May 1, 2022.

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Duyul] Korea Housing Finance Corporation (HF) will raise the interest rate of the long-term, fixed-rate, installment-repayment mortgage loan ‘Bogeumjari Loan’ by 0.45 percentage points starting in May.

The ‘u-Bogeumjari Loan’ applied for on the HF corporation’s website will have interest rates ranging from 4.10% per annum (10 years) to 4.40% (40 years), depending on the loan maturity.

The ‘Akkim e-Bogeumjari Loan,’ which can be applied for online through electronic contracts, will be available at rates 0.1 percentage points lower, from 4.00% (10 years) to 4.30% (40 years) per annum.

An HF corporation official stated, “The 5-year government bond yield rose more than 80 basis points over March and April, causing a sharp increase in the funding cost for Bogeumjari Loan resources, making the rate adjustment inevitable. To share the burden with low-income and genuine borrowers, we decided to minimize the rate hike to only 45 basis points.”

The official added, “Since an additional base rate hike is expected this year, it is worth considering using the Bogeumjari Loan, which fixes the interest rate for the entire loan term, rather than variable-rate products, to repay principal and interest stably. If you complete your Bogeumjari Loan application by April, you can receive the pre-increase interest rate.”

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