A housing complex. [Newsis]
A housing complex. [Newsis]

The Korea Housing Finance Corporation has decided to hold the August Bogeumjari Loan rate steady, citing the need to ease the interest burden on end-user borrowers.

Borrowers using the "Akim-e Bogeumjari Loan" product can take out loans at an annual rate of 4.90 percent for 10-year terms to 5.20 percent for 50-year terms. Low-income youth, newlywed households, socially vulnerable groups — including people with disabilities and single-parent families — and victims of jeonse fraud are eligible for a preferential rate reduction of up to 1.0 percentage point, bringing the minimum annual rate to between 3.90 and 4.20 percent.

Demand for relatively affordable policy loans has been rising as mortgage costs climb amid the Bank of Korea's rate-hiking cycle.

Meanwhile, the Bogeumjari Loan rate has risen five times this year — by 0.25 percentage points in January, 0.15 percentage points in February, 0.30 percentage points in April, 0.25 percentage points in May, and 0.30 percentage points in July.


hope@heraldcorp.com