KRW499.1 Billion Extended in Bogeumjari Loan in February

Sales of bogeumjari loans (long-term, fixed-rate mortgage loans) are on a continual upward track. 

KHFC announced on March 11 that it had extended such loans to the value of KRW499.1 billion in February 2008. Although this fell short of KRW586.3 billion in January, it represented growth of 79.4% compared to KRW278.2 billion in February 2007.

As KHFC extended KRW499.1 billion this February, the highest sales figure for February in the history of KHFC, the sales of bogeumjari loans for the first two months of January and February broke through the KRW1 trillion mark to stand at KRW1.0854 trillion.

The reason that sales of bogeumjari loans have been maintaining their rise although the interest rates on mortgage loans offered by commercial banks are declining is that the demand from movers increases in spring and home buyers increasingly prefer long-term, fixed rate products.