"5.2% for a 50-Year Term"... Korea Housing Finance Corporation (HF) Keeps October Bogeumjari Loan Rates "Frozen Again"

[Financial News] Korea Housing Finance Corporation (HF) will keep October rates unchanged for the Bogeumjari Loan, a long-term, fixed-rate, amortizing mortgage.
According to HF on the 28th, the Bogeumjari Loan's October rates range from a minimum of 3.90% to 4.20% per year when preferential rates are applied. Borrowers using the Akkim-e Bogeumjari Loan will pay interest ranging from 4.90% for a 10-year term to 5.20% for a 50-year term.
If lower-income young people, newlywed households, socially vulnerable groups—including people with disabilities and single-parent families—and victims of jeonse fraud receive additional preferential rates of up to 1.0 percentage point, rates as low as 3.90% for a 10-year term to 4.20% for a 50-year term will apply. HF had previously kept Bogeumjari Loan rates unchanged in August and September as well.
Meanwhile, some analysts have forecast that Bogeumjari Loan rates could rise after HF's Mortgage-Backed Securities (MBS) issuance exceeded last year's full-year total within the first eight months of this year. Data HF submitted to the office of Park Sung-hoon, a People Power Party lawmaker on the National Policy Committee, showed that MBS issuance from January through August totaled 12.3386 trillion won. This had already surpassed last year's full-year issuance of 10.6803 trillion won. MBS are a key funding source issued by HF to raise funds for long-term, fixed-rate policy mortgages such as the Bogeumjari Loan. Higher MBS issuance costs would increase HF's funding burden.

[email protected] Park Moon-soo Reporter