HF Construction, May Special BoGeumjari Loan Interest Rate Frozen at a Minimum Annual 3.25%

Korea Housing Finance Corporation (HF) announced on the 27th that it will freeze the May interest rates for the Special BoGumJaRi Loan, a long-term, fixed-rate, installment-repayment mortgage loan.

Accordingly, for the preferential type with a house price of 600 million KRW and income below 100 million KRW, the interest rates will be 4.05% (10 years) to 4.35% (50 years) per annum, which is 0.1 percentage points lower. For the general type with a house price up to 900 million KRW and no income restrictions, the rates will be 4.15% (10 years) to 4.45% (50 years) per annum.

For the preferential product, considering additional preferential rates for low-income youth, newlywed households, and socially disadvantaged groups, the interest rate can be as low as 3.25% to 3.55% per annum.

Basic Interest Rate Table by Special BoGeumjari Loan Product and Maturity as of May 2023.

An HF Corporation official stated, “Due to the recent resurgence of concerns over the US Federal Reserve’s tightening stance, uncertainty in the funding market continues, so we decided to freeze the May interest rates.”

The Special BoGumJaRi Loan is a policy financial product temporarily operated for one year by integrating the Safe Conversion Loan and Qualified Loan to reduce the interest rate fluctuation risk for low-income and real demand borrowers during a period of rising interest rates. Loans up to 500 million KRW are available without income restrictions if the house price is 900 million KRW or less.

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