Korea Housing Finance Corp to Raise Bogeumjari Loan Rate by 0.25 Percentage Points in January

With Preferential Rates Applied
Minimum Annual Rate of 2.90% to 3.20% by Loan Term

The Korea Housing Finance Corporation announced on December 24 that it will raise the interest rate on the "Bogeumjari Loan," a long-term, fixed-rate, fully amortizing mortgage, by 0.25 percentage points starting January 1 next year.

Based on the "Akkim-e Bogeumjari Loan," annual interest rates will range from 3.90% (10 years) to 4.20% (50 years). For low-income youth, newlywed households, socially disadvantaged groups (such as people with disabilities and single-parent families), and victims of rental fraud, a preferential rate (up to 1.0 percentage point) will be applied, resulting in minimum annual rates of 2.90% (10 years) to 3.20% (50 years).

An official from the Korea Housing Finance Corporation stated, "The rate hike was inevitable due to diminished expectations for a Bank of Korea base rate cut, as well as increases in government bond yields and MBS issuance rates." The official added, "However, we have minimized the increase, considering the housing cost burden on ordinary citizens and real demanders." The yield on five-year government bonds rose by 0.494 percentage points, from 2.751% on October 28 to 3.245% on December 22. During the same period, the MBS issuance rate increased by 0.56 percentage points, from 3.306% to 3.866%.

Meanwhile, if you complete your Bogeumjari Loan application by December 31, you can still receive the pre-increase interest rate.