The Generation Most Willing to Buy a House Is Under 30... HF Corporation Releases Survey on Housing Finance and Bogeumjari Loan Conditions

[Asia Economy Yeongnam Reporting Headquarters, Reporter Hwang Du-yeol] Korea Housing Finance Corporation (HF) announced the results of the ‘2021 Housing Finance and Bogeumjari Loan Survey’ conducted with a professional research agency to understand the public’s use of housing finance.

The survey is conducted annually to grasp consumers’ awareness and demands regarding housing finance, covering ▲housing finance usage status ▲intention to purchase housing ▲intention to use housing finance ▲usage status of Bogeumjari Loan and the Didimdol Loan for homeownership, among other topics.

Among general households, the proportion of ‘married’ households was 78.6%, and among ‘married’ households, the proportion of ‘dual-income’ households was 55.2%.

The average total assets of general households were 410.84 million KRW, and the average monthly household income was 3.93 million KRW.

Four out of ten general households were using housing finance products, accounting for 38.3% of general households.

By region, Seoul showed a usage rate of 45.1%, and Gyeonggi 48.1%, relatively higher than other regions.

The higher the household income, the higher the usage rate of housing finance products, and by age of the household head, those in their 40s showed the highest usage rate at 50.1%.

Among general households, 65.3% responded that owning one home for actual residence is essential.

13.9% believed there is a need to own housing for investment purposes, and 12.1% said they would use housing in rental forms such as jeonse or monthly rent if the residential environment is stable.

Among general households, 37.2% expressed an intention to purchase housing in the future, an increase of 7.1 percentage points compared to the previous year.

By age group of household heads, households aged 30 or younger showed the highest purchase intention at 64.8%, and 67.4% of non-homeowner households indicated an intention to buy a home in the future.

The reasons for choosing housing mortgage loan products among households using them were interest rate level at 58.2%, loan amount limit at 39.7%, and loan period at 26.7%.

Among households intending to use housing mortgage loans, those preferring variable interest rates significantly increased their preference for fixed interest rates when the interest rate difference with fixed rates narrowed from 0.75 percentage points to within 0.5 percentage points.

Conversely, households preferring fixed interest rates showed a significant increase in preference for variable interest rates when the interest rate difference with variable rates expanded from 0.25 percentage points to over 0.5 percentage points.

Among general households, 76.7% responded that the Youth Jeonse Deposit Guarantee among housing finance guarantee products is more useful for housing stability of the youth than the Youth Monthly Rent Deposit Guarantee.

The reasons were ▲using a jeonse contract rather than a monthly rent contract is advantageous for asset formation and cost reduction at 47.7%, and ▲interest on jeonse loans is cheaper than the interest costs of monthly rent and monthly rent loans at 26.9%, among others.

The satisfaction rate with the corporation’s housing mortgage loan products reached 89.4%, an increase of 8.7 percentage points compared to the previous year.

Households using the u-Bogeumjari Loan (including t-Bogeumjari Loan) cited the fact that interest burden does not increase even when market interest rates rise as the biggest reason for satisfaction at 52.1%.

Other reasons included trust because it is a public institution product at 47.3%, and the ability to repay the loan principal in fixed monthly installments at 44.0%.

The willingness to recommend the corporation’s housing mortgage loan products to others recorded 86.8%, an increase of 4.8 percentage points compared to the previous year.

The ‘2021 Housing Finance and Bogeumjari Loan Survey’ report can be found on the HF Corporation website.

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