“Bogeumjari loan interest rate comes down by 0.2 percentage points in September”

-The prime rate of "u-Bogeumjari loan" falls to as low as 3.6 percent -

The Korea Housing Finance Corporation (HF, CEO Kyung-ho Kim) announced on August 25 that it would cut by 0.2 percentage points the interest rates for Boguemjari loans, a long-term and fixed-rate mortgage with amortization, beginning September 1.

The standard rate of "u-Bogeumjari loan" where the fixed-rate is applied over a maturity of 10-30 years ranges from 5.0 percent (10-year maturity) to 5.25 percent (30-year maturity) a year. The rate of mixed "u-Bogeumjari loan" where the low fixed-rate is applied over the first three years of borrowing ranges from 4.6 percent (10-year maturity) to 4.85 percent (30-year maturity) a year.

For the preferential "u-Bogeumjari loan" applied to the low-income bracket with the combined annual income of a couple at KRW 25 million or less, customers can get the maximum 1 percentage point discount in the standard and mixed rates and take out loans at the lowest fixed-rate of 3.6 percent.

"The rate cut of Bogeumjari loans was possible through the diversification of fund raising and cost cuts," said a HF official. "The rate cut will be applied to the loans taken out beginning September 1 and we will strengthen our support for the low-income families so that they can buy a house through stable interest rate management."