Make a Prepayment of Bogeumjari Loan and Benefit from Fee Subsidies

- HF holds a prepayment fee subsidy event until Dec 31, 2021. 

Korea Housing Finance Corporation(HF, CEO Choi Joon Woo) stated on October 25 that it holds a “Bogeumjari Loan Prepayment Fees Subsidy Event” until Dec 31, this year. It is parts of HF efforts to use the proceeds from the Bogeumjari Loan prepayment in supporting low-to-moderate income Bogeumjari Loan borrowers.  

Borrowers of u-Bogeumjari Loan, Akkim e-Bogeumjari Loan or t-Bogeumjari Loan whose loan origination dates go back within three years are eligible for the subsidy, if they choose to make an early payment of the loans that had been transferred to HF from their lenders(financial institutions). 

 ㅇ After borrowers make prepayment fees, HF will look into the eligibility and transmit subsidies, which amount to 70% of the fees.

   * (Example) The prepayment fees of Bogeumjari Loan are charged in a slide scale; when the payment is made within three years of loan origination, the max. prepayment fee rate is 1.2%, while a year passes after the loan origination, 0.8% of prepayment fee rate is applied. With the HF prepayment subsidies, the actual fees paid by the borrowers will go down to 0.24%. For those whose loan origination dates go back longer than two years, the actual prepayment fees further decrease down to 0.12%. 

The event is to induce borrowers of Bogeumjari Loans with surplus fund to make prepayment of the loans and use the proceeds in providing more targeted support for low-to-moderate income households.

 ㅇ There is no particular procedure to apply for the event. HF will screen subsidy beneficiaries among borrowers who make prepayment of Bogeumjari Loan between Oct 25 and Dec 31, 2021, based on the following criteria. 

After prepayment is made, HF will go through about a month of examination and transmit the fee subsidies to the bank account of the borrowers. Those who do not use automatic transfer service of the bank account have to call HF Call Center(1688-8114) and inform HF of the bank account information to receive the subsidy. 

For more information, go to HF website: www.hf.go.kr