HF set to ease the burden of late payment interest for Bogeumjari Loans
- Date 2015-04-23
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HF set to ease the burden of late payment interest for Bogeumjari Loans
The interest rate to be cut by up to three percentage points for new Bogeumjari Loans from May 2015
The interest rate to be cut by up to three percentage points for new Bogeumjari Loans from May 2015
The late payment interest rate for Bogeumjari Loans will be lowered.
Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) announced on the 23rd that for new loans taken out
from May 2015 through its long-term, fixed-rate Bogeumjari Loan program, it will cut the interest on late payments
by up to three percentage points.
According to HF, payments that are up to three months late are subject to the contractual interest rate plus 4%,
and those that are more than three months late are the contractual interest rate plus 5%. The maximum rate
of interest charged on late payments cannot exceed 12%.
An HF official said,“We expect that our recent decision will ease the late payment burden on our Bogeumjari Loan
customers who are experiencing payment difficulties. As a public corporation dedicated to promoting the stability
and affordability of the housing market for ordinary citizens, HF will continue to strive to reduce our customers' home
loan burdens.”
* When the contractual interest rate is 2.85% (as of April 2015, the rate applies to standard u-Bogeumjari Loans with a 10-year maturity)
At the same time, HF is currently running a campaign under which it offers a cut in late payment penalties
even to borrowers who are more than two months late in their principal payments if they repay the overdue
amount in full with a lump-sum payment.