HF mortgage customers satisfied with its long-term fixed rates
- Date 2015-01-26
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HF mortgage customers satisfied with its long-term fixed rates
- 75.3% of HF mortgage customers are willing to recommend its mortgage products -
Korea Housing Finance Corporation (HF, CEO Kim Jae-Chun) announced on the 26th that according to an
HF survey, its mortgage customers are highly satisfied with its loan products, such as the Bogeumjari Loan
and Didimdol Loan for Home Buyers, largely thanks to their long-term fixed rates.
This year's annual survey, "2014 Survey on Demands for Home Loans and Bogeumjari Loan," was conducted
from August 6 - October 6, 2014 on 2,000 households with HF mortgage loans and 5,000 households without
the loans.
□ Respondents say they are satisfied with HF's long-term, fixed-rate home loans
Among the 2,000 households with the Bogeumjari Loan or Didimdol Loan for Home Buyers, 73.6% responded
that they are satisfied with their loan product, and the figure is slightly up from last year's 72.1%.
In particular, Bogeumjari Loan borrowers cited the following reasons: ▲its fixed interest rate despite an increase
in the key interest rate (33.0%), ▲ its repayment term of up to 30 years (19.5%), and ▲ its equated monthly
installment option (14.7%). Didimdol Loan users mentioned the following as the reasons for their satisfaction:
▲ its lower interest rate than any other home loan lender offers (37.1%), ▲ no additional interest expense
to be incurred in the case of key interest rate increases (30.9%), and ▲ its repayment term of up to 30 years
(15.5%). These figures clearly show that the long-term fixed interest rates offered by HF mortgage loans are
the dominant factor that drives borrower satisfaction.
Furthermore, 75.3% of respondents indicated that they are willing to recommend HF home loans to others,
indicating relatively high levels of overall satisfaction with HF loan products.
□ Four of every 10 non-homeowner households predict a rise in house prices
Asked about the house price outlook for 2015, 37.7% of the 5,000 households without HF mortgage loans
responded that house prices will rise. More specifically, 40.2% (or 755) of 1,880 non-homeowner households
and 36.2% (or 1,129) of 3,120 home-owning households expect home prices to rise in 2015, marking the highest
percentage of people responding "yes" to this question over the last three years.
【 Trends in House Prices Forecast 】
□ A higher proportion of respondents say that they will buy a home this year
Asked about whether they are planning to buy a home, 77.3% (or 3,864) of the 5,000 households without HF
loans said "yes," 5.4 percentage points higher than last year's survey. Among the 1,136 households that responded
"no," 45.1% of homeowner households said that they will not purchase an additional home because they
do not feel the need. At the same time, 40.4% of non-homeowner households said that they will not do so
because they cannot afford it.
□ The average desired price of a house in Seoul is 406.1 million won
Among the 5,000 households without home loans, the average price expectation of the 3,864 households
willing to purchase a house is 285.44 million won. Asked about what type of housing they are planning to purchase,
they responded as follows: ▲ an apartment (66.8%), ▲ a single-family home or multi-family house (22.8%), and
▲ a multi-unit building (7.7%). In addition, for the 965 households willing to buy a house in Seoul, the average
expected price of housing in Seoul stands at 405.1 million won, 120 million won higher than that of housing
elsewhere in the nation.
□ Access to public transportation and proximity to workplace are the major factors to consider in renting a house
In the meantime, when asked about the most important factors to consider in renting a house, 1,880 households
willing to purchase a house responded as follows: ▲ access to public transportation and proximity to workplace (27.5%),
▲ Jeonse or monthly rental cost (22.0%), ▲ educational facilities for kids (16.7%), and ▲ a pleasant
neighborhood (16.6%).