Bogeumjari Loan Interest Rate to Increase by 0.15 Percentage Points Starting December Applications

u-Bogeumjari Loan, t-Bogeumjari Loan Annual Interest Rate 2.25~2.50%
Akime-Bogeumjari Loan Annual Interest Rate 2.15~2.40%

[Asia Economy Reporter Park Sun-mi] Korea Housing Finance Corporation (HF) announced on the 25th that it will raise the December interest rates of the long-term fixed-rate, installment-repayment mortgage loan, Bogeumjari Loan, by 0.15 percentage points.

The ‘u-Bogeumjari Loan,’ applied for through the HF Corporation website, and the ‘t-Bogeumjari Loan,’ applied for at bank counters, can be used at annual interest rates ranging from 2.25% (10-year maturity) to 2.50% (30-year maturity) depending on the loan term. Additionally, the ‘Akkim e-Bogeumjari Loan,’ which is applied for online through electronic contracts and reduces costs, offers interest rates 0.10 percentage points lower, ranging from 2.15% (10 years) to 2.40% (30 years) annually.

If borrowers refinance variable-rate or lump-sum repayment mortgage loans obtained from secondary financial institutions into a better Bogeumjari Loan, the interest rates will be the same as those of the u-Bogeumjari Loan or t-Bogeumjari Loan, and if an electronic contract is made, the Akkim e-Bogeumjari Loan interest rate will apply. Socially disadvantaged groups (single-parent families, persons with disabilities, multicultural families, families with three or more children) or newlyweds can receive additional interest rate benefits.

An HF Corporation official stated, “Due to the recent rise in market interest rates, including the mid- to long-term government bond rates, which are the benchmark rates for long-term fixed-rate loans (increased by more than 0.2 percentage points compared to the previous rate adjustment period in August), it was inevitable to adjust the Bogeumjari Loan interest rates. We will continue to operate the Bogeumjari Loan interest rates stably to alleviate the burden on low-income and actual demand borrowers.”