For Special Bogeumjari Loan Borrowers, Existing Home Disposal Period Extended to Three Years

- The existing home disposal period for a new home purchase has been extended to three years from the original two years

- This change applies to existing Bogeumjari Loan borrowers retrospectively

For those who take out the Special Bogeumjari Loan from March 7, 2023, onwards and existing Bogeumjari Loan borrowers, the original existing home disposal period has been extended to three years. 

Korea Housing Finance Corporation (HF, CEO Choi Joon Woo) said on February 22, 2023, that it is extending the existing home disposal period from the initial two years to three years for those who apply for the Special Bogeumjari Loan to buy a new home.

The Special Bogeumjari Loan is available to non-homeowners and single-home owners. For borrowers who own two homes temporarily in the process of buying a new home, this loan product is offered only on the condition that they sell their existing home. With the new change, if such two-home owners plan to sell off their existing home and move into a new home, they are now allowed to dispose of the existing home within three years from their loan origination date.

This change applies equally to current Bogeumjari Loan users as well. However, when Special Bogeumjari Loan borrowers buy an additional home and thus own two homes after taking out the loan, the required existing home disposal period will remain the same at six months* as before. 

 * 3 years if the additional home is acquired after acquiring the right to a pre-sale apartment unit (including the right to move in for members of a redevelopment project) or through inheritance

An HF official said, “HF has made this change in line with the recent tax law amendments to extend the existing home disposal period and thereby help customers who have difficulties disposing of their existing home due to the recent real estate market slowdown. HF will continue to address the problems of low-income households with real home demand in the future.”

To prevent additional application by those who have already taken out the Special Bogeumjari Loan with an exemption from the early repayment fee, the maximum number of applications for the Loan per borrower is limited to one.