HF sets interest rates for its Relief Loans at 2.5% to 2.6%
- Date 2015-03-17
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HF sets interest rates for its Relief Loans at 2.5% to 2.6%
- The interest rates for adjustable-rate loans and fixed-rate standard loans set at as low as 2.53% and 2.55%, respectively -
Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) announced on the 17th that it has set the interest
rate of its Relief Loans to be released on the 24th at around the mid-point of 2.5%.
By product, purchase rates* for adjustable-rate loans whose rates are adjusted every five years and for fixed-rate
standard loans whose rates are fixed through the end of the loan term are set at 2.53% and 2.55%, respectively.
Relief Loan interest rates are going to be determined at the discretion of banks by adding 0.1%p or so to the
purchase rates, and they are expected to be set at the mid range of 2.5% - 2.6%.
* Purchase rates refer to the interest rates offered by HF to banks at the time of purchasing Relief Loans,
and they apply to Relief Loans taken out from March 24th through the end of April each year.
An HF official said, “We have set the purchase rate at the mid point of 2.5% taking into consideration decreases in
loan establishment and handling fees in the process of the transition of loans and a key policy rate cut by
the Bank of Korea. It is expected that our Relief Loans will help borrowers pay off their loans, helping them
avoid snowballing debts and contributing to swiftly reshaping the structure of the nation's housing loans."
Meanwhile, Relief Loans allow households with a floating-rate mortgage or an interest-only mortgage to switch to
a fixed-rate option with regular installments over time. From the 24th, the loans will be available at branch offices of
16 banks* across the nation. Please contact the call center of the lending bank or visit the HF webpage for more
information on eligibility and actual interest rates.
* KookMin Bank, IBK, NH, Suhyup, Shinhan Bank, Woori Bank, KEB, Hana Bank, Citi Bank, SC Bank,
Kyongnam Bank, Kwangju Bank, Daegu Bank, Busan Bank, Jeonbuk Bank, and Jeju Bank