This March, Bogeumjari Loan Rate as Low as 3.30%

- A 0.10%p increase for applications filed on and after March 1, 2018

Korea Housing Finance Corporation (HF, CEO Lee Jung-Hwan) stated on February 23, 2018, that it will raise the rate of its long-term, fixed rate, amortized Bogeumjari Loan by 0.10%-points starting from March 1, 2018.

With the rate increase, which comes into effect from March 1, 2018, the rates of ‘u-Bogeumjari Loan,’a mortgage loan offered through the HF webpage (www.hf.go.kr), and‘t-Bogeumjari Loan’ available at commercial banks will be in the range of 3.40% (10-year term) to 3.65% (30-year term). The rates of‘Akkim e-Bogeumjari Loan,’ which offers a rate reduction thanks to its online loan agreement system, will be in the range of 3.30% (10-year term) to 3.55% (30-year term). Given that this rate increase applies to Bogeumjari Loan applications filed on and after the first of March, the interest rates before the increase will apply to those who have subscribed to the Bogeumjari Loans via the HF webpage or a commercial bank through the end of February.  

Bogeumjari Loans are offered to couples whose combined annual income is KRW 70 million or less. In addition, socially underprivileged households (including single-parent and multicultural families or families with three or more children or those with disabilities) with an annual income of KRW 60 million or less will receive at least a 0.4%-point rate discount (or up to a 0.8%-point rate discount for households falling in any two of the above categories).

An HF official said, "Due to the continued rate hikes in the domestic and international markets, we decided to raise our rates. However, as a state-sponsored housing finance provider, we minimized the rate increase in consideration of its possible interest burden on low- and middle-income groups in need of our housing finance services. As the market rates are expected to go up this year, we will use caution to ensure the Bogeumjari loan rates remain stable."