Housing Finance Corporation Raises July Bogeumjari Loan Interest Rate by 0.25 Percentage Points

Consider Refinancing with the September Anshim Conversion Loan

[Asia Economy Reporter Sim Nayoung] Korea Housing Finance Corporation announced on the 24th that it will raise the interest rate on the long-term, fixed-rate, installment-repayment mortgage loan, Bogeumjari Loan, by 0.25 percentage points starting in July.

Accordingly, the interest rate for the 'u-Bogeumjari Loan' applied through the HF Corporation website will be 4.60% per annum (10 years) to 4.85% (40 years), and the 'Akkim e-Bogeumjari Loan' applied online via electronic contract will be 0.1 percentage points lower, from 4.50% (10 years) to 4.75% (40 years).

An HF Corporation official stated, "The 5-year government bond yield, which serves as the benchmark for the Bogeumjari Loan interest rate, has surged sharply, making a considerable rate adjustment inevitable," adding, "However, considering the government's policy focus on stabilizing people’s livelihoods and the burden of housing costs on the middle and low-income classes suffering from high inflation, we decided to minimize the rate increase."

He continued, "Since global monetary tightening policies are expected to continue for a considerable period, it is worth considering using the Bogeumjari Loan, which fixes the interest rate for the loan term, and switching to the Safe Conversion Loan scheduled to be launched in September to repay principal and interest stably," and explained, "If you complete your Bogeumjari Loan application by June, you can receive the pre-increase interest rate."

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