Bogeumjari Loan Rates to Be Adjusted for April 

- 0.25%p increase for applications made from April 1

Korea Housing Finance Corporation (HF, CEO Choi Jun-Woo) said on the 26th that it will raise the annual interest rates on Bogeumjari Loan products, its long-term, fixed-rate mortgage loans, by 0.25% points for April 2021.

The rate increase will bring the interest rates of u-Bogeumjari Loan, a mortgage loan offered through the HF homepage (www.hf.go.kr), and t-Bogeumjari Loan, an offline mortgage loan available at commercial banks, to 2.60% (10-year term) to 2.85% (30-year term) on April 1, 2021. 

At the same time, the rates of Akkim e-Bogeumjari Loan, a cost-saving, online-only Bogeumjari Loan that offers a 0.10%-point rate reduction thanks to its online loan agreement system using an online validation certificate, will be increased to 2.50% (10-year term) to 2.75% (30-year term). 

For those who switch from non-banking lenders' floating-rate or bullet-payment mortgage loans to the Deonaeun Bogeumjari Loan scheme, the rates of u-Bogeumjari Loan and t-Bogeumjari Loan apply. If they sign up for the scheme online using an online agreement system, HF offers the Akkim e-Bogeumjari Loan rates.

An HF official said, “This adjustment is attributed to a recent hike in the benchmark mid-to-long-term government borrowing costs following recent upward movement in the U.S. treasury yield. We have minimized our rate adjustment not to place too much repayment burden on low- and middle-income homebuyers with real home demand.”

He also added, “Given that Bogeumjari Loan rates are fixed for a maturity of up to 30 years despite the recent upward rate trend, we recommend homebuyers consider taking out a Bogeumjari Loan. If they complete their loan application process this March, they will be offered the existing rates before the upward adjustment takes effect.”