HF Adjusts Bogeumjari Loan Rates for December

- 0.15%p increase for applications from December 1

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) announced on the 25th that it will raise the annual interest rates on Bogeumjari Loan products, its long-term, fixed-rate mortgage loans, by 0.15%p for December 2020. 

With the adjustment, the interest rates of u-Bogeumjari Loan, a mortgage loan offered through the HF homepage (www.hf.go.kr), and t-Bogeumjari Loan, an offline mortgage loan available at commercial banks, will be in the range of 2.25% (10-year term) to 2.50% (30-year term). At the same time, the rates of Akkim e-Bogeumjari Loan, a cost-saving, online-only Bogeumjari Loan that offers a 0.10%-point rate reduction thanks to its online loan agreement system, will be in the range of 2.15% (10-year term) to 2.40% (30-year term). 

HF applies the rates of u-Bogeumjari Loan and t-Bogeumjari Loan to those who switch from non-banking lenders’ floating-rate or bullet-payment mortgage loans to the Deonaeun Bogeumjari Loan scheme. For those who sign up for the scheme online using an online agreement system, the Akkim e-Bogeumjari Loan rates apply. 

HF also offers a further rate discount for socially underprivileged households (including single-parent and multicultural families or families with three or more children or those with disabilities) and newlywed couples.

   ※ Please note that the lowest possible rate is set at 1.2% even in the case that the additional rate discounts bring the rate below 1.2%.

An HF official said, “On the back of the recent rise in the mid- to long-term Korean government bond yield (an increase of more than 0.2%p from the immediately preceding rate adjustment last August), a standard benchmark for long-term fixed interest rates, and other market rates, rate adjustments to Bogeumjari Loan products became inevitable. However, we will continue to keep the loan rates stable to ease the interest rate burden for low-income and real-need homebuyers.”