HF adjusts Bogeumjari Loan Rate for May

- Akkim e-Bogeumjari Loan interest rate will range between 4.00% and 4.30%

Korea Housing Finance Corporation(HF, CEO Choi Joon Woo) stated on 22 April that it will increase the annual interest rate by 0.45% point for May on Bogeumjari Loan product, its long-term, fixed-rate, amortizing mortgage loans.

Accordingly, the interest rates of u-Bogeumjari Loan, applied on the HF website(www.hf.go.kr), will range from 4.10%(10-year maturity) to 4.40%(40-year maturity), whereas the rates of Akkim e-Bogeumjari Loan, applied online with electronic documents will be applied with 4.00%(10-year maturity) and 4.30%(40-year maturity), 0.1% point lower than u-Bogeumjari Loan. The annual rates will be fixed throughout the loan period. 

HF explained, “As the rate of the government bond with 5-year maturity shot up more than 80bp for two months, in March and April, there has been sharp increase in the funding costs of Bogeumjari Loans, which makes the rate adjustment unavoidable. However, to alleviate the burden on low-to-moderate income households and end users, the rate increase range was minimized to 45bp.”

He added, “As further increases of the base rate are expected this year, potential borrowers m

ight as well consider to take out Bogeumjari Loans, which allow stable repayment plan with the fixed rates, rather than other floating rate loan products. Those who complete the loan application by the end of April can be applied with the current rate before the increase.”  

 【 Bogeumjari Loan Rates per Product Type and Maturity  】