Bogeumjari Loan Rates to Rise by 0.25 Percentage Point Starting in May... Additional 0.1 Point Increase in Regulated Areas

\r\n\r\n[Financial News] The interest rate on Bogeumjari Loan, a long-term, fixed-rate, installment-repayment mortgage, will rise next month.
\r\nKorea Housing Finance Corporation (HF) said on the 24th that it will raise Bogeumjari Loan rates by 0.25 percentage point from May 1. This follows increases of 0.25 point in January, 0.15 point in February, and 0.30 point in April, marking the fourth hike this year.
\r\nAs a result, the rate for the "Akkim-e Bogeumjari Loan" will be 4.60% per year for a 10-year term and 4.90% for a 50-year term. For low-income young people, newlywed households, socially vulnerable groups such as people with disabilities and single-parent families, and victims of jeonse fraud, the lowest rate will be 3.60% for a 10-year term and 3.90% for a 50-year term.
In addition, from new applications submitted on May 11, an additional interest rate of 0.10 percentage point will apply if the collateral home is located in a regulated area, including a speculative zone, a Speculative Overheating District, or an Area Subject to Adjustment.
An HF official said, "As the upward trend in Mortgage-Backed Securities (MBS) issuance rates continues, a gradual increase in Bogeumjari Loan rates is unavoidable." The official added, "We will continue to work to ease the burden on end users."
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zoom@fnnews.com Lee Jumi Reporter