Korea Housing Finance Corporation (HF) said on the 24th that it will raise the Bogeumjari Loan rate by 0.25 percentage points starting in January next year.

The benchmark rate for the "Akkim-e Bogeumjari Loan" will be applied at an annual 3.90% (10-year maturity) to 4.20% (50-year maturity). For low-income young adults, newlyweds, socially disadvantaged groups, and victims of jeonse fraud, a preferential rate of up to 1.0 percentage point will be applied, setting the rate at 2.90% (10-year) to 3.20% (50-year) per year.

A view of an apartment complex in Seoul. /Courtesy of News1

The Housing Finance Corporation has kept the Bogeumjari Loan rate unchanged at 3.75% to 4.05% annually from February to this month. An official at the corporation said, "With diminished expectations for a Bank of Korea base rate cut and rising yields on Treasury bonds and MBS issuance, a rate hike is unavoidable."

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