HF Offers Deferrals on Principal Payment for State-Guaranteed Mortgage Borrowers on Child Care Leave

- For Bogeumjari Loan and Conforming Loan users on child care leave, the number of maximum allowed deferrals is raised from one to three
- HF lowers default rates, supporting defaulting borrowers in getting back on their payment schedule

State-guaranteed mortgage borrowers on child care leave will now face a reduced loan payment burden. For mortgage borrowers defaulting on their loan, the default rate will be lowered when they apply for reduced default interest to get back on their repayment schedule.     

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) announced on June 29, 2018, that for state-guaranteed mortgage borrowers on child care leave, it will increase the number of maximum allowed deferrals of principal payment from one to three.

With the decision, ▲ Bogeumjari Loan and Conforming Loan users on child care leave are allowed to defer their principal payment three times for up to three years in total, while ▲ Didimdol Loan users on child care leave are allowed to defer their principal payment two times for up to two years in total. In addition, for Bogeumjari Loan and Conforming Loan users whose ▲ current place of residence, ▲ current or previous place of work, or ▲ current or previous place of business is in a state of employment or industrial crisis, they can defer their principal payment from one time up to three times.
    
Furthermore, when HF customers defaulting on their loan payment for over two months ask for a reduction in their default rate, HF will lower their default rate, helping them pay back their loan.

An HF official said, “We expect that more deferrals in principal payment and default rate discounts will help ease the loan payment burden on cash-strapped or defaulting mortgage borrowers.”