HF Offers a Cut in Bogeumjari Loan Rate for Socially Disadvantaged Groups
- Date 2016-09-26
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□ Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) announced on the 26th that it will cut the Bogeumjari loan rate by up to 0.8%p for qualified households to ensure housing stability for socially disadvantaged groups.
□ Potential financially vulnerable households refer to households that fall into one of the following categories: households with disabilities①, multi-children households②, multicultural households③, or single-parent households④. Households that fall into one of the categories will receive a 0.4%p cut in the loan rate, and those that fall into two of them will receive a rate cut of up to 0.8%p.
□ As these favorable rate cuts are intended for financially vulnerable households, they are strictly applicable only to households that satisfy the following three qualifications: those whose combined annual income is KRW 60 million or less; those whose home is 85m2 or less; and those whose home is valued at KRW 600 million won or less.
* Households with disabilities, and multi-children, multicultural, and single-parent households
□ An HF official said, “Households that satisfy the qualifications can apply for the favorable Bogeumjari loan rate at our homepage and through our mobile application. We expect that this cut will help socially disadvantaged households buy their home with less interest burden than before.”
□ Potential financially vulnerable households refer to households that fall into one of the following categories: households with disabilities①, multi-children households②, multicultural households③, or single-parent households④. Households that fall into one of the categories will receive a 0.4%p cut in the loan rate, and those that fall into two of them will receive a rate cut of up to 0.8%p.
□ As these favorable rate cuts are intended for financially vulnerable households, they are strictly applicable only to households that satisfy the following three qualifications: those whose combined annual income is KRW 60 million or less; those whose home is 85m2 or less; and those whose home is valued at KRW 600 million won or less.
- llustrated Example of the Favorable Interest Rate Cut -
In the case of KRW 100MN 10-year amortized Akkim e-Bogeumjari Loan
| Before | Favorable Rate | After | Savings | ||
| First Year | Until Maturity | ||||
| Households that fall into one of the categories* | 2.4% | 0.4%P | 2.0% | KRW 380,000 | KRW 2.16MN |
| Households that fall into two of the categories | 2.4% | 0.8%P | 1.6% | KRW 770,000 | KRW 4.3MN |
□ An HF official said, “Households that satisfy the qualifications can apply for the favorable Bogeumjari loan rate at our homepage and through our mobile application. We expect that this cut will help socially disadvantaged households buy their home with less interest burden than before.”