Reducing Repayment Burden... Korea Housing Finance Corporation Launches 50-Year Maturity Policy Mortgage

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[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] Korea Housing Finance Corporation (HF) will launch 50-year maturity Bogeumjari Loan and Qualified Loan products starting August 1.

The loan launch follows the "New Government Household Loan Management Direction and Gradual Regulation Normalization Plan" announced by the Financial Services Commission on June 16.

HF expects that the institutional improvements will expand the choices for customers seeking mortgage loans and help reduce the monthly repayment burden for young people with relatively low income in the early stages of the loan.

The 50-year maturity Bogeumjari Loan and Qualified Loan are available to households with members aged 34 or younger or newlyweds within 7 years of marriage, and repayments can be made using either the equal principal or equal principal and interest methods.

The loan interest rate will be set at the current 40-year maturity rate level to alleviate the financial cost burden on young people, and the existing 40-year maturity rate will be decided at a level 0.02 percentage points lower than the current rate.

For customers using the 50-year maturity policy mortgage product, borrowing 300 million KRW will reduce the annual principal and interest repayment burden by 960,000 KRW compared to the 40-year maturity.

An HF official said, "As of the end of June this year, users of the 40-year maturity product introduced by the corporation last July account for 18% of all Bogeumjari Loans, and this has spread not only to banks but also to the secondary financial sector," adding, "We will continue to actively respond to the government's livelihood stabilization policy and take the lead in supporting low-income and real demand borrowers."

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