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

[Asia Economy Yeongnam Reporting Headquarters, Reporter Hwang Du-yeol] Korea Housing Finance Corporation (HF) will raise the interest rates on the long-term, fixed-rate, installment-repayment mortgage loan, Bogeumjari Loan, by 0.25 percentage points starting from July.

The ‘u-Bogeumjari Loan’ interest rates applied when applying through the website will increase from 4.60% per annum (10 years) to 4.85% (40 years), and the ‘Akkim e-Bogeumjari Loan,’ which is applied for online via electronic contracts, will be 0.1 percentage points lower, ranging from 4.50% (10 years) to 4.75% (40 years).

An HF official stated, “The 5-year government bond yield, which serves as the benchmark for Bogeumjari Loan interest rates, has surged sharply, making a considerable rate adjustment unavoidable. However, considering the government’s policy focus on stabilizing people’s livelihoods and the burden of housing costs on the middle class and low-income households struggling with high inflation, we have decided to minimize the rate hike.”

The official added, “Since global monetary tightening policies are expected to continue for a considerable period, it is worth considering using the Bogeumjari Loan, which has fixed interest rates for the loan term, or switching to the Safe Conversion Loan scheduled to be launched in September to repay principal and interest stably. If you complete your Bogeumjari Loan application in June, you can receive the pre-increase interest rate.”

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