Kookmin Housing Fund Offers Preferential Interest Rates on Bogumjari Loan from Second Child Onwards

Easing Multi-Child Criteria from Three to Two Children to Address Low Birthrate
Income Requirements for Households with One or Two Children Lowered by 10 Million KRW Each
Relaxed Requirements to Take Effect Starting April 1

The Korea Housing Finance Corporation announced on the 24th that it will ease the multi-child criteria from the existing three children to two children in response to the low birthrate. Accordingly, households with two or more children will be eligible for preferential interest rates when using the Bogeumjari Loan.

In addition, the combined income requirements for couples applying for the Bogeumjari Loan with one or two children will also be relaxed.

Furthermore, small business owners, houses located outside the metropolitan area, and houses acquired through inheritance or gifts will be able to apply for living stabilization funds.

The Housing Finance Corporation will implement these relaxed Bogeumjari Loan requirements starting April 1.

To address the low birthrate issue, the preferential interest rate for newlywed households will be increased from the existing 0.2 percentage points to 0.3 percentage points, and a new preferential interest rate (0.5 percentage points) has been established for households with two children.

Additionally, the income requirements for Bogeumjari Loan applicants with one or two children have been eased by 10 million KRW each, lowering the loan application threshold for actual homebuyers.

Moreover, as part of support for vulnerable sectors, the Bogeumjari Loan for living stabilization funds can now be used for ▲ small business owners ▲ houses located outside the metropolitan area ▲ houses acquired through inheritance or gifts.

To further reduce the financial burden on consumers, the prepayment penalty rate applied when repaying the Bogeumjari Loan within three years will be lowered by 0.2 percentage points (from 0.7% to 0.5%).

Kim Kyunghwan, President of the Corporation, stated, "The Bogeumjari Loan is a representative policy mortgage product, and the Corporation will continue to participate in national efforts to address the low birthrate and strive to reduce the financial burden on consumers."