HF to ease borrowing conditions of Bogeumjari loans

- Period of home ownership from the date of ownership registration extended from 5 to 15 years -

On July 30, 2010, Housing & Finance (HF, CEO Joo-jae Lim) announced its plan to ease the borrowing conditions of the long-term Bogeumjari mortgage loan from August 2, 2010.

Before the decision, only those whose registration for the passage of a title on a home has not passed five years could apply for a Bogeumjari mortgage loan. In the case that the five-year period has passed, a person could apply for a Bogeumjari loan only to pay off an existing loan. The decision extended the five-year term to 15 years, effectively removing the restriction previously imposed on long-term home owners.

“The decision to deregulate the Bogeumjari loan, which is Korea's leading fixed-rate mortgage loan, will be good news for borrowers concerned that their household debt would go up if there is a rise in interest rates following the government's implementation of an exit strategy,” said an HF official.

As of July 29, 2010, HF has received u-Bogeumjari loan applications totaling 2.5 trillion won in less than a month since the new product was released, and 650 billion won has already been serviced. The decision to further ease borrowing conditions will likely boost the already high demand for the mortgage loan.