 KHFC Offers KRW 127.8 Billion in Bogeumjari Loans in July

  -Huge number of borrowers shift to fixed-rate loans

 KHFC provided KRW 127.8 billion (1,669 loans) in bogeumjari loans in July, the highest monthly volume so far this year. Out of this amount, KRW 46.1 billion, or 36% of the total, was provided through the e-mortgage loan channel. July is typically the slowest month in the housing business, but the volume of bogeumjari loan was high this year because the applicable interest rate had dropped by 0.3%p (June 12), and the rate can be lowered by additional 0.3%p on e-mortgage loans, which were introduced on June 29. It is, therefore, possible to obtain a bogeumjari loan with a rate as low as 5.8%, which is virtually the same as the rates on variable-rate products now offered by commercial banks.

 Especially notable in July, 31% of bogeumjari loans were used to refinance mortgage loans facilitated by other financial institutions. This is a significant increase compared to 18% for the entire first half. This may be attributable to borrowers' concerns that the recent rise in market rates will continue going forward.