“People in their 30s take up the largest share in u-Bogeumjari loan"

- 71 percent are maturities of 15 years or more and 88 percent are the national housing size (85㎡) or smaller-

The average age of users of "u-Bogeumjari loan", a long-term and fixed-rate mortgage with amortization, is 39 years old and the average loan amount is KRW 108 million.

The Korea Housing Finance Corporation (HF, CEO Joo-jae Lim) announced on July 21 that a survey of 57,770 users from June 21 last year to July 15 this year showed such results.

According to HF, the average age of "u-Bogeumjari loan" users is 39 years old and their annual income is KRW 34 million. The average loan amount and maturity are KRW 108 million and 16.8 years, respectively.

By age, people in their 30s take up the largest percentage with 54.9 percent, followed by ▲those in their 40s (27.3 percent), ▲those in their 20s (7.9 percent), ▲those in their 50s (7.8 percent) and ▲ those in their 60s or above (2.1 percent). By annual income, ▲ 26.9 percent are KRW 20 million or less, followed by ▲ between KRW 40 million and KRW 50 million (21.7 percent), ▲ between KRW 30 million and KRW 40 million (18.7 percent), ▲ over KRW 50 million (16.7%) and ▲ between KRW 20 million and KRW 30 million (16 percent).

The average u-Bogeumjari loan amount is KRW 108 million. Loans between KRW 50 million and KRW 100 million take up the largest percentage with 37.4 percent, followed by ▲ between KRW 100 million and KRW 150 million (22.3 percent) and ▲ KRW 50 million or less (20.5 percent). This shows that 80.2 percent are KRW 150 million or less.

By maturity, 15-year maturity makes up the largest percentage with 37.8 percent, followed by ▲10-year maturity (29.1 percent), ▲20-year maturity (16.8 percent) and ▲30-year maturity (16.3 percent). This shows that maturities of 15 years or more which are eligible for income tax credit account for 70.9 percent.

As to repayment method, the fixed quota method in which borrowers repay the combined amount of the fully amortizing principal and interest until maturity makes up the largest percentage with 56.6 percent, followed by ▲the principal equal repayment (33.4 percent) in which borrowers repay equal principal every month and ▲the graduated repayment (10 percent) in which a repayment amount increases every month, which is suitable to customers expecting income increase.

By loan purposes, 57.9 percent take out loans to buy a house as they do so within three months after home purchase and 42.1 percent to repay ▲ existing mortgages.

By type of housing, apartments take up the largest percentage with 97.3 percent of the total loans, followed by ▲ multi-family houses (1.3 percent), ▲ row houses (1 percent) and ▲ detached houses (0.4 percent). In terms of home size, 88 percent are small and medium-sized houses of the national housing size (85㎡) or smaller.

"It is a wise choice for low-income people to use a fixed-rate loan with amortization in which a certain amount of principal and interest is repaid every month while preparing for interest rate hikes in order to reduce the cost burden of home purchasing," said a HF official. Inquiries about "u-Bogeumjari loan" are pouring in after the government's "comprehensive measures for the soft-landing of household debts" were announced."

The official expected, "Given that the "u-Bogeumjari loan" rate is as low as 4.8 percent a year (3.8 percent a year for low-income householders without a home) at a time when mortgage rates are rising, this product will greatly help low-income people buy a house and contribute to the stabilization of household debts.

"u-Bogeumjari loan" is a long-term and fixed-rate mortgage with monthly equal installment repayment of principal and interest over more than 10 years for low-income people who need loans to buy a house or repay their existing mortgages. The application for u-Bogeumjari loan can be made online. This year alone, as many as 32,000 customers used the loan.