Less Burden on Low-income Households when They Borrow Housing Funds

HFCGF guarantee fee rate to be reduced by 30~40%

  When low-income households with no existing houses obtain housing finance loans from their banks, they need to pay a guarantee fee, and this is likely to be reduced significantly.

  KHFC is planning to lower the Housing Finance Credit Guarantee Fund (HFCGF) guarantee fee rate by 30~40% for both retail customers and  developers as early as next month.

  This will be the first reduction of  the guarantee fee rates of  the HFCGF since KHFC was established in March 2004. An official at KHFC said, "Due to the instability of market interest rates, financing costs are rising sharply in the case of low-income households.

  On the other hand, developers are faced with a more difficult business environment as a result of the ceiling on apartment lotting-out prices and unsold apartments." He went on to say, "In the context of enhancing the policy objective and public nature of the HFCGF, which exists to support the housing welfare of low-income citizens, we have decided to lower the guarantee fee."