February’s Bogeumjari Loan Rates as Low as 2.40%

- A 0.1%p increase for applications made from February 1

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) said on January 23, 2020, that it will raise the annual interest rates on Bogeumjari Loan products, its long-term, fixed-rate mortgage loans, by 0.10% points from February 2020.

The rate increase will bring 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, to 2.50% (10-year term) to 2.75% (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 increased to 2.40% (10-year term) to 2.65% (30-year term).

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

A further rate discount is available to 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 officer said of this rate increase, “We have recently decided to raise our Bogeumjari rates in response to rising borrowing costs in the market.”