HF Construction, Special BoGeumJaRi Loan Interest Rates Frozen at 4.05~4.45% Annually

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Du-yeol] Korea Housing Finance Corporation (HF) announced on the 24th that it will freeze the March interest rates for the long-term fixed-rate, installment repayment mortgage loan called the ‘Special Bogeumjari Loan.’

Starting in March, customers who are not familiar with non-face-to-face applications such as online applications will also receive a 0.1 percentage point reduction benefit when applying and submitting in person.

In this case, the interest rates for face-to-face and non-face-to-face (internet electronic contract) applications will be applied equally. For the general type, the rates range from 4.15% per annum (10 years) to 4.45% (50 years), and for the preferential type, from 4.05% per annum (10 years) to 4.35% (50 years), effectively providing a 0.1 percentage point reduction benefit.

The benefit will also apply to customers who have already applied for a loan, with the reduced interest rate applied at the time the loan is executed in March.

Table of Basic Interest Rates by Special BoGeumjari Loan Product and Maturity as of March 2023.

An HF Corporation official said, “Compared to early February, the 5-year government bond yield rose by more than 40 basis points (1bp = 0.01 percentage points), significantly increasing the corporation’s funding costs,” adding, “We decided to freeze the interest rates to reduce financial costs for low-income and real demand borrowers.”

To alleviate customer inconvenience, HF Corporation plans to expand the banks accepting face-to-face applications, currently limited to SC First Bank, to include Industrial Bank of Korea as early as the end of March, with further expansions planned.