Special BoGeumjari Loan Standard Type Interest Rate Increased by 0.25% Points

The interest rate for the Special Bogeumjari Loan, a mortgage loan provided by the Korea Housing Finance Corporation (KHFC), will be raised for the first time in six months.

KHFC announced on the 28th that it will increase the general interest rate for the Special Bogeumjari Loan, applicable to those with a housing price exceeding 600 million KRW or an income exceeding 100 million KRW, by 0.25 percentage points starting August 11.

As a result, the general interest rate, which was previously 4.15% (10 years) to 4.45% (50 years) annually, will rise to 4.40% (10 years) to 4.70% (50 years) annually.

KHFC explained that after launching the Special Bogeumjari Loan at the end of January and lowering the interest rate by 0.5 percentage points, it had kept the rate unchanged for six months. However, considering the increased cost of funding and loan application trends, it decided to raise the general interest rate.

Korea Housing Finance Corporation logo.

However, the preferential interest rate for those with a housing price of 600 million KRW or less and income of 100 million KRW or less will remain unchanged to support housing funds and reduce interest burdens for low-income and vulnerable groups.

The preferential rate will continue to apply the base interest rate of 4.05% to 4.35% annually, and the maximum additional interest rate discount of 0.8 percentage points for low-income youth, newlywed households, and socially disadvantaged groups (such as victims of rental fraud and single-parent families) will also be maintained as before.

The change in the general loan interest rate will apply to loan applications submitted from August 11 onward, while applications submitted before August 10 will be subject to the existing rates.

A KHFC official stated, "This interest rate adjustment was an unavoidable decision considering the increased funding costs during the six-month rate freeze period and the higher-than-planned effective application amounts. Despite the difficult funding conditions, we will continue to stably provide housing finance for low-income and vulnerable groups during this period of rising interest rates."

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