“HF lowers interest rate on Bogeumjari Loan by 0.40%p beginning June 1”

- As low as 5.1% on the u-Bogeumjari loan -

Housing & Finance (HF, CEO Joo-jae Lim) announced on May 31 that it would lower the standard interest rate on its Bogeumjari loans of all maturities by 0.4%p for new applicants starting June 1. A Bogeumjari loan is a long-term, fixed-rated loan product. This will enable loan applicants to obtain long-term, fixed-rated loans at the same rate as a short-term variable rate products available at banks, which should expand opportunities for low-income earners to secure their own homes.

With this rate reduction, the interest rate on the "current Bogeumjari loan" will be lowered to 5.7% ~ 5.95% from 6.1% (maturity of 10 years) ~ 6.35% (maturity of 30 years) presently. Also, an interest rate of 5.50% (for maturity of 10 years) to 5.75% (for 30 years), reflecting a 0.2%p discount, will be applied as the standard rate for e-Bogeumjari loans (www.e-mortgage.co.kr), and the rate can be set as low as 5.3% when loan applicants select options, including the interest rate discount.

HF decided to offer the u-Bogeumjari (slated to be introduced on June 21) at an interest rate 0.4%p lower than the standard rate of the Bogeumjari loan. The u-Bogeumjari loan is a new product of which the lending cost has been reduced as a result of HF managing its bonds directly. Customers selecting the new product will benefit from a lower rate of 5.3 to 5.55% and even as low as 5.1% if they select the discount option.