HF raises Bogeumjari Loan IR by 0.5% in Dec

-  Yearly IR of Save e-Bogeumjari Loan to rise to 4.65% - 4.95%.

- Yearly IR for Relief Refinance Loan continues to end of year.

The Korea House Financing Corporation (HF) (CEO Choi, Jun-Woo) announced on Dec. 9 that the interest rate (IR) on its Bogeumjari Loans would be raised by 0.5%p beginning Dec. 20. The Bogeumjari is a mortgage plan that offers long-term, fixed rate loans with an installment payback option.   

Per the change, the interest rate for “U-Bogeumjari Loan”, for which borrowers can apply via HF’s website (www.hf.go.kr), will rise to 4.75% p.a. (10Y) and to 5.05% p.a. (50Y). The rate for “Save e-Bogeumjari Loan”, for which borrowers apply via the online channel by signing in an electronic agreement form, will rise to 4.65% p.a. (10Y) and to 4.95% p.a. (50Y); 0.1%p lower than the U-Bogeumjari Loan.

Despite the rapidly rising market rate, the HF has not adjusted interest rates for Bogeumjari Loans since it lowered the rate by 0.35%p on Aug. 17 2022, to reduce the burden on low-income households and to aid end-users in managing their housing expenses.  

According to a corporation official, raising the IR for Bogeumjari Loans is unavoidable due to the continued increase in BOK’s base rate and MBS issuance rate. The official also explained that―as a temporary relief and to minimize the burden on customers―borrowers who apply for the loan p

Home Pension initial guarantee fee becomes partly refundable for termination within 3 years

-