The lower end of the Bogeumjari Loan's 10-year-maturity rate will move into the 5% range for the first time. It is the first such case since the Korea Housing Finance Corporation (HF) began offering the product in March 2014.
HF said on the 2nd that it will raise Bogeumjari Loan rates by 0.10 percentage point from the 9th. After the adjustment, the applicable rate, based on the "Amkke-e Bogeumjari Loan," ranges from 5.00% (10 years) to 5.30% (50 years) per year, depending on maturity.
The Bogeumjari Loan is a mortgage product repaid in installments of principal and interest at a long-term fixed rate. This is the first rate increase in four months since July. This year it raised rates by 0.25 percentage point in January, 0.15 percentage point in February, 0.30 percentage point in April, 0.25 percentage point in May and 0.30 percentage point in July, and this is the sixth.
Socially disadvantaged groups such as low-income young people, newlywed households, people with disabilities and single-parent families, and victims of jeonse fraud can receive a preferential discount of up to 1.0 percentage point and take out loans at as low as 4.00% to 4.30% per year. Applications completed by the 8th will be subject to the pre-increase rate.
An HF official said, "We raised the rate slightly after comprehensively considering market interest rates and mortgage-backed securities (MBS) funding conditions." He added, "We will keep a close watch on market conditions and strive to minimize the financial burden on ordinary people and actual home buyers."