This November, HF Raises the Preferential Rate of Special Bogeumjari Loan by 0.25%p

-  HF freezes the rate for jeonse fraud victims for loan applications submitted from Nov. 3, 2023, onward

Korea Housing Finance Corporation (HF, CEO Choi Joon-Woo) stated on October 30, 2023, that it will raise the rates of Special Bogeumjari Loan by 0.25%p on November 3, 2023. 

 ※ Despite the rate increase, HF will keep the rates at the current range of 3.65% (10 years) to 3.95% (50 years) per year for the victims of jeonse fraud to ensure their housing stability and support their economic rehabilitation.   

Accordingly, the preferential rates (applicable to those with a home valued at KRW 600 million or less and combined annual income of KRW 100 million or less) will range from 4.50% (10 years) to 4.80% (50 years) per year. For low-income youth, newlywed couples, and the socially disadvantaged (families with a disabled member or single parent) eligible for an additional preferential rate discount (up to 0.8%p), the rates will go down to the range of 3.7% (10 years)to 4.00% (50 years) per year. 

An HF official said, “This rate raise is inevitable due to the upward trend in government bond rates from concerns over prolonged austerity and geopolitical risks in the Middle East as well as escalating uncertainty in the financing market. We have carefully minimized the rate hike to alleviate the financial strain on individuals with low to moderate income and those genuinely seeking a housing solution.”

 * 5-yr government bond: (1.30 days) 3.240% → (10.24 days) 4.140%, [+0.900%p]

   MBS rate: (2.10 days) 3.925% → (10.24 days) 5.100%, [+1.175%p]

In the meantime, the pre-increased rate will be available to those who complete their Special Bogeumjari loan application by November 2, 2023.