HF Cuts Bogeumjari Loan Rate by 0.10%p This September
- Date 2018-08-27
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HF Cuts Bogeumjari Loan Rate by 0.10%p This September
- The cut drives the loan rates down to as low as 3.10% per year depending on product and maturity
Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) revealed on the 27th that it is going to lower the interest rate of the Bogeumjari Loan by 0.10%-points this September. The Bogeumjari Loan is a long-term, fixed-rate mortgage loan offered by HF.
With the cut, the annual interest rates for the u-Bogeumjari Loan, an HF mortgage loan available online at its webpage (www.hf.go.kr), and t-Plus Bogeumjari Loan, an HF offline mortgage loan available at commercial banks, will go down to 3.20% (10-yr term) - 3.45% (30-yr term). Also, the Akkim e-Bogeumjari Loan, with an interest rate 0.10%-points lower than that of the regular Bogeumjari Loan thanks to its unique online loan agreement system, will be offered at an annual interest rate of 3.10% (10-yr term) - 3.35% (30-yr term) after the cut.
The interest rate of the Better Bogeumjari Loan* will remain the same as that of the regular Bogeumjari Loan. Designed to support those with a floating-rate or bullet mortgage loan from a non-bank lender, the Better Bogeumjari Loan helps customers switch their mortgage from the non-bank lender to a banking institution.
* With up to 50% of the principal to be repaid in a lump sum at the end of the term, borrowers can reduce the amount of their monthly principal payments.
In addition, HF offers an additional rate discount to underprivileged households (single-parent or multicultural families or families with three or more children or those with disabilities) and newlywed couples, sending the Bogeumjari Loan rate down to as low as 2.28%*.
* An additional rate discount of up to 0.80%p available for those with the prime lending rate and a 0.02%p rate discount coupon offered for those using Ansim JuMoney, an HF smartphone application.
An HF official said, “In addition to this August’s 0.20%p rate cut for Bogeumjari loans, we decided on a further rate cut this September to reduce housing costs for low-income first home buyers.”