HF Adjusts Bogeumjari Loan Rate for November

- 0.10%p increase for applications from Nov 1.

-Low income households should check available preferential discount rates.

Korea Housing Finance Corporation(HF, CEO Choi Joon Woo) stated on October 26 that it will increase the annual interest rates by 0.10%p for November on Bogeumjari Loan product, its long-term, fixed-rate, amortizing mortgage loans.

Accordingly, from the loans of which application is completed on Nov 1, the interest rates of u-Bogeumjari Loan and t-Bogeumjari Loan will range from 3.10%(10-year maturity) to 3.40%(40-year maturity), whereas Akkim e-Bogeumjari Loan interest rate will be applied with 3.00%(10-year maturity) and 3.30%(40-year maturity), 0.1%p lower than the other two loan types. The annual rates will be fixed throughout the loan period. 

HF said, “Affected by government bond rate increase and other upward pressures, the Bogeumjari Loan rates had to be adjusted. Those who complete the loan application by the end of October can be applied with the current rate before increase.”

It should be noted, however, whereas Bogeumjari Loan with 10 to 30 years of maturity do not come with particular restriction, the Bogeumjari Loan with 40-year maturity are confined to those who are 39 years or younger, or couples whose marriage registration date goes back to less than 7 years, or who are getting married within 3 months from application.

HF added, “The final rates by product and maturity after applying additional preferential or spread are sustained throughout the loan period. For more information on the terms or features of the loans, please visit HF website(www.hf.go.kr) or call HF Call-Center(1688-8114).”

“Furthermore, in general, longer maturity means less monthly repayment, but as longer maturity is applied with a higher base interest rate, the total amount of interest to be repaid during entire redemption period increases. Therefore, applicants should make a careful examination on their economic and financial situations before deciding taking out of the Bogeumjari Loan, the loan amount, a maturity period and a redemption method.”