□ Interest Rate on Bogeumjari Loans Lowered by 0.30%p

 KHFC lowered the interest rate on bogeumjari loans by 0.30%p by taking advantage of the cost savings afforded by MBS issuance and the stabilization of long-term bond rates. The lowered interest rate will be effective on loans originating on June 12 and afterwards.  Accordingly, the interest rate was lowered from 6.6% to 6.3% p.a. on 10-year maturity loans; from 6.7% to 6.4% for 15-year products; from 6.8% to 6.5% for 20-year products; and from 6.85% to 6.55% for 30-year products.

 With the recent interest reduction, the interest rate differentials between long-term, fixed-rate bogeumjari loans and floating-rate mortgage loans offered by commercial banks have been somewhat narrowed. KHFC expects that it should continue help stabilize the housing finance market and improve conditions for households by promoting stable, fixed-rate housing loans.

 In addition, in the future, by monitoring the market interest rates and diversifying funding sources, KHFC plans to set interest rates of bogeumjari loans flexibly to minimize the burden to its customers.