HF adjusts Bogeumjari Loan Rate for July

- Akkim e-Bogeumjari Loan interest rate will range between 4.50% and 4.75%

Korea Housing Finance Corporation(HF, CEO Choi Joon Woo) announced on 27 June the increase of the annual interest rate for July on Bogeumjari Loan product, its long-term, fixed-rate, amortizing mortgage loans, by 0.25%point.

Accordingly, the interest rates of u-Bogeumjari Loan, applied on the HF website(www.hf.go.kr), will range from 4.60%(10-year maturity) to 4.85%(40-year maturity), whereas the rates of Akkim e-Bogeumjari Loan, applied online with electronic documents will be applied with 4.50%(10-year maturity) and 4.75%(40-year maturity), 0.1% point lower than u-Bogeumjari Loan.

HF explained, ”The rate of the government bond with 5-year maturity, which is the base rate of the Bogeumjari loans, has shot up to the level where considerable rate adjustment became unavoidable. However, given the government policy to stabilize people’s livelihood and ease the housing costs burden on the low-to-moderate income households and end users, who are struggling to make ends meet amid high inflation, the rate increase was kept to the minimum.“

He added, “As the global monetary tightening sets to stay for a foreseeable future, one might consider taking out Bogeumjari loans, of which rates are fixed throughout the maturity, or to refinance with the Relief Conversion Loans, which are scheduled to be released in coming September. In the meantime, those who complete the loan application by the end of June can be applied with the current rate before the increase.”