KHFC expands support for Bogeumjari loans from New Year

In support of medium-to-low income people and strengthen public function of Bogeumjari loan

The Korea Housing Finance Corporation (KHFC, CEO Joo-jae Lim) has extended the credit line of preferential-rate Bogeumjari loan for multi-children households starting from the New Year. The income ceiling is also raised in support of low-income people.    

* Boeumjari loan with preferential rates: Fixed interest rate loan with preferential rate benefits extended to low-income people or people without home ownership. The gap in interest rates is absorbed by the government.

On December 30, 2010, KHFC announced that the Bogeumjari loan with preferential rates will be extended to households with a combined annual income of KRW25 million or less starting from January 3, 2011. Previously, the loan was offered to households with a combined annual income of KRW20 million or less.

The decision is expected to greatly reduce the interest rate burden of low-income people. The difference in interest rates - the discount from the base rate that is absorbed by the government - is 1.0 percent for households with a combined annual income of KRW16 million or less; 0.75 percent for those exceeding KRW16 million but KRW20 million or less; and 0.5% for those exceeding KRW20 million but KRW25 million or less. 

Meanwhile, KHFC also raised the credit line of preferential-rate Bogeumjari loans for multi-children households＊ from KRW100 million to KRW150 million.  

* A multi-children household is one where an applicant and his/her spouse have three or more children of less than 20 years of age.

“The decision to increase the public function of Bogeumjari loan will benefit more low-income households with preferential rates. KHFC will continue to strengthen its support for medium-to-low income people to buy a home,” said a KHFC official.