This December 10-YR Bogeumjari Loan Rate as Low as 3.1%

- A 0.2%p increase for applications filed on and after December 1, 2017

Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) stated on November 24, 2017, that it will raise the rate of its long-term, fixed rate, amortized Bogeumjari Loan by 0.2%-points starting from December 1, 2017.

With the rate increase, the rates of‘Akkim e-Bogeumjari Loan,’ which offers a rate reduction thanks to its online loan agreement system, will be in the range of 3.1% (10-year term) to 3.35% (30-year term). The rates of‘u-Bogeumjari Loan,’a mortgage loan offered through the HF webpage, and‘t-Bogeumjari Loan’ available at commercial banks will be in the range of 3.20% (10-year term) to 3.45% (30-year term).

The interest rates before the increase will apply to those who have subscribed to the Bogeumjari Loans through the end of November.

Bogeumjari Loans are offered to households whose annual income is KRW 70 million or less. In addition, a 0.4%-point rate discount is offered for socially underprivileged households with an annual income of KRW 60 million or less (including single-parent and multicultural families or families with three or more children or those with disabilities).

An HF official said of the rate increase,“We have kept the Bogeumjari Loan rates unchanged since November to ease the burden on our customers. But, as funding costs have exceeded yields on interest, we have suffered a reverse margin. This makes raising our rates inevitable. However, we minimized the rate increase so as not to place too much of a burden on customers.”