□ Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) announced on the 23rd that it would increase the interest rate of Bogeumjari Loans, its long-term, fixed-rate, and amortizing mortgage loans, by 0.3%p.

□ With the rate increase, the annual interest rates on the 'Akkim e-Bogeumjari Loan*' will be in the range of 2.70% (10-year term) to 2.95% (30-year term), and those on the ‘u-Bogeumjari Loan,’ an HF online mortgage loan available through its webpage, and the ‘t-Plus Bogeumjari Loan,’ an HF offline mortgage loan available at commercial banks, will be 2.80% (10-year term) to 3.05% (30-year term).

* The Akkim e-Bogeumjari Loan is offered at an interest rate 0.10%p lower than that on the u-Bogeumjari Loan because its loan agreement and mortgage agreement can be executed over the Internet.

□ Customers who complete their application for loans by the end of December are eligible for the previous interest rate, and socially disadvantaged groups such as households with disabilities, multi-children households, or multicultural households can receive a 0.4%p cut in the loan rate.

□ An HF official said, "HF has maintained an all-time low rate for Bogeumjari Loans. It lowered the rate by 0.5%p three times this year alone in line with the general decline in market interest rates. As a matter of fact, it is inevitable to increase the rate by 0.6%p because of a sharp increase in the HF's cost of funds caused by a considerable rise in the interest rate on 5-year treasury bonds, which serve as a benchmark for Bogeumjari Loans, as a result of the recent increase in the US Federal funds Rate. However, HF decided to raise rates by 0.3%p to support the working class."

□ The official also said, "This adjusted rate is still lower than the mortgage rates of commercial banks by about 0.7%p, and HF will continue to consider overall market conditions when determining the interest rate in order to minimize loan repayment burden of first-time homebuyers."

□ The official added, "HF will continue to support first-time homebuyers by launching a Bogeumjari Loan exclusively for actual residents on January 1 next year, for which the debt-to-income (DTI) ratio limits (maximum of 80%) are eased. This Bogeumjari Loan will be available for those who desire to take out loans for the balance for new homes via collective lending."