Long-term Fixed Mortgage 'Special Bogeumjari Loan' Interest Rate Frozen in March

Standard Type Annual 4.15~4.45%
Applications Accepted at IBK from End of March

Korea Housing Finance Corporation announced on the 24th that it will freeze the March interest rates for the long-term fixed-rate, installment-repayment mortgage loan called the ‘Special Bogeumjari Loan’.

However, starting in March, customers who are not familiar with non-face-to-face applications via the internet will still receive a 0.1 percentage point discount benefit when applying and submitting in person.

In this case, the same interest rate will be applied for both face-to-face and non-face-to-face (internet electronic contract) applications. For the general type, the rate will effectively decrease by 0.1 percentage points, ranging from 4.15% per annum (10 years) to 4.45% (50 years), and for the preferential type, from 4.05% (10 years) to 4.35% (50 years).

Customers who have already applied for a loan will also have the reduced interest rate applied at the time the loan is executed in March.

A representative from KHFC stated, “The 5-year government bond yield has risen by more than 40 basis points compared to early February, significantly increasing the corporation’s funding costs,” and added, “We decided to freeze the interest rates to reduce financial costs for low-income and actual demand borrowers.”

To alleviate customer inconvenience, KHFC plans to expand the banks accepting face-to-face applications, currently limited to SC First Bank, to include Industrial Bank of Korea as early as the end of March, with further expansions also being considered.

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