Bogeumjari Loan Rate Changes for June 

- 0.10%p increase for applications from June 1

Korean Housing Finance Corporation (HF, CEO Choi Joon-Woo) stated on the 21st that it will raise the annual interest rates on Bogeumjari Loan products, its long-term, fixed-rate mortgage loans, by 0.10%p for June 2021.

With the adjustment, 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, will be in the range of 2.70% (10-year term) to 2.95% (30-year term). 

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, will be in the range of 2.60% (10-year term) to 2.85% (30-year term). 

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

An HF official said, “Due to the recent rise in the mid-to-long-term Korean government bond yield, a standard benchmark for long-term fixed interest rates, rate adjustments to Bogeumjari Loan rates were inevitable. However, we managed to minimize the rate increases so as not to overly burden low-income and real-need first-time homebuyers, who are our main customer base.” 

He went on to say, “It is worth considering a Bogeumjari Loan given that the loan rates are fixed for a maturity of up to 30 years despite the recent upward rate trend. If homebuyers complete their loan application process this May, they will be offered the existing rates before the upward adjustment takes effect.”