Korea Housing Finance Corporation to Raise Bogeumjari Loan Interest Rate by 0.25%p

Effective January 1 Next Year
Preferential Rates as Low as 2.90% Per Annum

Korea Housing Finance Corporation (President Kim Kyunghwan) announced on December 24 that it will raise the interest rates on the "Bogeumjari Loan," a long-term, fixed-rate, amortizing mortgage product, by 0.25 percentage points starting January 1, 2026.

With this rate increase, the standard interest rate for the "Akkim-e Bogeumjari Loan" will be adjusted to an annual rate of 3.90% (10 years) up to a maximum of 4.20% (50 years). However, preferential rates of up to 1.0 percentage point will be offered to low-income youth, newlywed households, socially disadvantaged groups (such as people with disabilities and single-parent families), and victims of rental fraud, allowing them to access rates as low as 2.90% (10 years) to 3.20% (50 years) per annum.

An official from Korea Housing Finance Corporation explained, "The rate hike has become unavoidable as expectations for a Bank of Korea base rate cut have diminished, and both government bond yields and mortgage-backed securities (MBS) issuance rates have risen. However, the increase has been minimized in consideration of the housing cost burden on ordinary citizens and genuine homebuyers."

In fact, the yield on 5-year government bonds rose by 0.494 percentage points from 2.751% on October 28 to 3.245% on December 22, while the MBS issuance rate increased by 0.560 percentage points from 3.306% to 3.866% during the same period.

If an application for the Bogeumjari Loan is completed by December 31, the current interest rates prior to the increase will be applied.

Bogeumjari Loan Interest Rates by Maturity.