Korea Housing Finance Corporation to Expand Eligibility for Prime Rate Bogeumjari Loans

- The annual combined income ceiling of eligible couples to be raised from KRW 25 million to KRW 45 million

- Interest rate to be set 1-2% points below commercial bank rates, at 4.0-4.85%

- Effective as of January 16; applications can be made online

Korea Housing Finance Corporation (HF, CEO Seo Jong-dae) announced it would significantly expand the pool of eligible applicants for the Prime Rate Bogeumjari Loan by raising the annual income ceiling from KRW 25 million to KRW 45 million, effective from January 16. Prime Rate Bogeumjari Loans offer interest rates that are 1~2 percentage points lower than those offered by commercial banks.

The Prime Rate Bogeumjari Loan has been provided at government-subsidized interest rates to households that do not own a house and whose annual incomes do not exceed KRW 25 million, but the income ceiling is to be raised to KRW 45 million to account for the deterioration in housing welfare caused by the recent surge in jeonse prices. This would give moderate-income families a strong boost toward achieving home ownership.

The loan will be made available to households wanting to purchase a house with a market price of up to KRW 300 million and a maximum floor area of 85㎡ The maximum loan amount for each household will be KRW 100 million (150 million for households with more than one child).

Applications for the loan can be made through HF's website, at www.hf.go.kr.