HF Construction Conducts Survey on Housing Finance and Bogeumjari Loan... Satisfaction Reaches Record High of 94.5%

Korea Housing Finance Corporation (HF) announced the results of the '2022 Housing Finance and Bogeumjari Loan Survey' conducted with a professional research institute on the 5th to understand the public's use of housing finance.

This survey is conducted annually to grasp consumers' awareness and needs regarding housing finance and includes topics such as ▲housing finance usage status ▲intention to purchase a house ▲intention to use housing finance ▲usage status of Bogeumjari loans.

According to the survey, the percentage of respondents who believe that owning one house per household for actual residence is essential rose slightly to 70.3% from 65.3% last year, while the percentage of those intending to purchase a house in the future was 38.0%, similar to last year's 37.2%.

Also, the housing finance usage rate was 37.5%, close to last year's 38.3%, indicating that the intention to purchase a house and the use of housing finance remain steady.

When using mortgage loans, respondents prioritized 'interest rate level' and 'loan limit' first, followed by the type of interest rate such as fixed or variable, and then loan maturity.

Korea Housing Finance Corporation logo.

Regarding future mortgage loan use, 49.0% preferred fixed interest rates, and 16.9% preferred variable interest rates. The main reason for preferring fixed interest rates was that even if market interest rates rise, the loan interest rate can remain low.

Furthermore, when the interest rate difference between fixed and variable rates narrows from 1.25 percentage points to within 1.0 percentage point, the preference for fixed interest rates significantly increases, and when the difference is within 0.5 percentage points, most variable rate users switch to fixed rates.

The intention to use ultra-long-term Bogeumjari loans with maturities of 40 years or more for youth and newlyweds was 44.4%, with the biggest reason for wanting to use it being the reduced monthly principal and interest repayment burden.

The intention to use the Youth Jeonse Deposit Guarantee, which applies preferential guarantee limits and other measures for young households without homes compared to general products, was 55.6%, up from 45.8% the previous year.

The survey results showed that the satisfaction rate for the corporation's Bogeumjari loan and Didimdol loan for home purchase reached an all-time high of 94.5%, an increase of 5.1 percentage points from the previous year. Along with satisfaction, the willingness to recommend these products to others also rose by 2.8 percentage points to 89.6% compared to the previous year.

The top reason for satisfaction was that "interest burden does not increase even if market interest rates rise." This was followed by "trustworthy because it is a public institution product," "able to repay the loan principal in fixed monthly amounts," and "loan use is possible for up to 40 years."

The percentage of respondents who said that the reduced principal and interest burden from using ultra-long-term Bogeumjari loans helped household finances was also very high at 92.4%. The amount saved from the reduced repayment burden was mainly used for living expenses such as food, housing, clothing, taxes, and communication fees.