Surpassing 10 Trillion Won in 9 Days Since Launch... Explosive Demand for Special BoGeumJaRi Loan Applications

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] The cumulative application amount for the Special BoGeumjari Loan of Korea Housing Finance Corporation (HF) reached 10.5008 trillion KRW as of the 7th.

This achievement was reached just 9 days (7 business days) after applications and registrations began on January 30.

The Special BoGeumjari Loan is a policy financial product temporarily operated for one year by integrating the Safe Conversion Loan and Qualified Loan to reduce the interest rate fluctuation risk for low-income and real demand borrowers during a period of rising interest rates. Loans up to 500 million KRW are available without income restrictions if the housing price is 900 million KRW or less.

For the general type with housing prices of 900 million KRW or less and no income restrictions, an annual interest rate of 4.25% (10 years) to 4.55% (50 years) applies. For the preferential type with housing prices of 600 million KRW and income of 100 million KRW or less, a 0.1%p lower rate of 4.15% to 4.45% annually is available.

If you apply online using the electronic contract method (Akkim-e), you can receive an additional 0.1%p interest rate discount.

Korea Housing Finance Corporation logo.

For the preferential product, considering preferential interest rates of 0.1%p for low-income youth, 0.2%p for newlywed households, and 0.4%p for socially considerate groups, the lowest annual interest rate can be as low as 3.25% to 3.55%.

Households with three or more minor children, housing prices of 600 million KRW, and income of 70 million KRW or less receive a multi-child preferential interest rate of 0.4%p, and with an additional 0.1%p for electronic contracts, the Special BoGeumjari Loan can be used at an annual rate of 3.65% to 3.95%.

Also, newlywed couples aged 39 or younger with housing prices of 600 million KRW and income of 60 million KRW or less can use the loan at an annual rate of 3.75% to 4.05% by reflecting preferential interest rates of 0.1%p for low-income youth, 0.2%p for newlywed couples, and an additional 0.1%p for electronic contracts.

To reduce the cost burden for borrowers who want to refinance existing loans with the Special BoGeumjari Loan, prepayment penalties on existing loans are waived, and no prepayment penalties are charged even if the Special BoGeumjari Loan is repaid early.

Loan applications can be made on the HF Corporation website or through the Smart Housing Finance app.

An HF Corporation official said, “It seems to have gained popularity among low-income and real demand borrowers for various purposes such as repaying existing loans, purchasing new homes, and returning rental deposits by applying relatively low fixed interest rates compared to market mortgage loans,” and “We will ensure that the review of future application volumes proceeds smoothly.”