Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) revealed on the 25th that it is going to lower the interest rate of the Bogeumjari Loan by 0.20%-points this August. The Bogeumjari Loan is a long-term, fixed-rate mortgage loan offered by HF. 

With the cut, the annual interest rates for the u-Bogeumjari Loan, an HF mortgage loan available online at its webpage (www.hf.go.kr), and t-Plus Bogeumjari Loan, an HF offline mortgage loan available at commercial banks, will go down to 3.30% (10-yr term) - 3.55% (30-yr term). Also, the Akkim e-Bogeumjari Loan, with an interest rate 0.10%-points lower than that of the regular Bogeumjari Loan thanks to its unique online loan agreement system, will be offered at an annual interest rate of 3.20% (10-yr term) - 3.45% (30-yr term) after the cut. 

The interest rate of the Better Bogeumjari Loan will remain the same as that of the regular Bogeumjari Loan. Designed to support those with a floating-rate or bullet mortgage loan from a non-bank lender, the Better Bogeumjari Loan helps customers switch their mortgage from the non-bank lender to a banking institution.     

In addition, HF offers an additional rate discount to underprivileged households (single-parent or multicultural families or families with three or more children or those with disabilities) and newlywed couples, sending the Bogeumjari Loan rate down to as low as 2.38%*.

 * An additional rate discount of up to 0.80%p available for those with the prime lending rate and a 0.02%p rate discount coupon offered for those using Ansim JuMoney, an HF smartphone application. 

An HF official said, “We decided on a rate cut this August to reduce housing costs for low-income first home buyers. We will make more efforts to extend our Bogeumjari Loan benefits to those on high-rate, non-bank mortgage loans.”