HF Raises Bogeumjari Loan Rate by 0.15%p for February

- For preferential type, lowest rates range between 3.05% and 3.35% as per maturity

Korea Housing Finance Corporation (HF, CEO Kim Kyung-Hwan) announced on January 23 that it will raise the interest rates on Bogeumjari Loans, its long-term, fixed-rate, amortized mortgage loans, by 0.15%p starting from February 1.

- Accordingly, the interest rates of ‘Akkim-e’ Bogeumjari Loans will range between 4.05% (10-year maturity) and 4.35% (50-year maturity)

- In addition, low-income young adults, newlywed households, and socially disadvantaged groups, including households with disabled members or single-parent households, along with the victims of Jeonse fraud, can benefit from additional rate discounts up to 1.0%p, setting the final interest rates between 3.05% (10-year maturity) and 3.35% (50-year maturity)

An HF official said that the rate increase was unavoidable due to rising yields on government bonds and MBS issuance rates since last October, but the increase was kept to a minimum considering the housing cost burden on ordinary homebuyers and end users.

* 5-year Korean Treasury yield : (Oct. 28) 2.751% → (Jan. 13) 3.242% [+0.491%p]

   MBS issuance rate              : (Oct. 28) 3.306% → (Jan. 13) 3.817% [+0.511%p]

Meanwhile, applications for Bogeumjari Loans submitted by January 31 will be eligible for the current interest rates before the increase.