Special BoGeumjari Loan Interest Rate Increased by up to 0.25 Percentage Points from September 6

General type increased by 0.25% points, preferential type increased by 0.2% points
Jugeumgong "Still lower than commercial banks"

The Korea Housing Finance Corporation announced on the 30th that it will raise the interest rates for the Special Bogeumjari Loan by 0.25 percentage points for the general type and 0.2 percentage points for the preferential type starting September 7. However, for victims of jeonse fraud, the same interest rates as before (3.65%~3.95%) will be applied to support housing stability and economic recovery.

The general type will have a base interest rate of 4.65% per annum (10 years) to 4.95% (50 years), and the preferential type (for housing prices up to 600 million KRW & income up to 100 million KRW) will have a base interest rate of 4.25% (10 years) to 4.55% (50 years). Socially disadvantaged groups such as low-income youth, newlywed households, persons with disabilities, and single-parent families can receive an additional preferential interest rate (up to 0.8 percentage points), allowing them to use the loan at rates as low as 3.45% (10 years) to 3.75% (50 years) per annum.

The Korea Housing Finance Corporation explained, "Despite this increase, the Special Bogeumjari Loan interest rates remain slightly lower than the mortgage loan rates of commercial banks." As of the 24th, the average mixed mortgage loan rates offered by the four major commercial banks ranged from 4.28% to 5.40%.

It added, "We have refrained from adjusting interest rates as much as possible to provide maximum benefits to low-income and real demand borrowers. However, due to increased funding costs caused by rising government bond and MBS rates, as well as higher-than-planned effective application amounts, it has become unavoidable to adjust the interest rates."

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