October Boggeumjari Loan Rates Held Steady, Remaining in the 4% Range

The Korea Housing Finance Corporation (HF) announced on the 28th that it would freeze Boggeumjari Loan rates for October. As a result, long-term fixed rates for the standard type remain in the high 4% to low 5% range per annum. The Boggeumjari Loan is a policy mortgage—a long-term, fixed-rate, installment-repayment home loan whose interest rate is fixed from disbursement through maturity.

The 'Akkeum-e Boggeumjari Loan,' processed via electronic agreement, carries rates of 4.90% to 5.20% per annum depending on the maturity period. The 10-year term has the lowest rate at 4.90%, followed by 5.00% for 15 years, 5.05% for 20 years, 5.10% for 30 years, 5.15% for 40 years, and 5.20% for 50 years, with rates rising as the maturity lengthens.

Low-income young adults, newlywed couples, socially disadvantaged groups such as people with disabilities and single-parent households, and victims of jeonse (long-term rental) fraud can receive preferential rate reductions of up to 1.0 percentage point, depending on eligibility. With the maximum preferential rate applied, rates drop to 3.90% per annum for the 10-year term and up to 4.20% for the 50-year term.

The corporation raised rates by 0.30 percentage points in July to reflect rising market rates and funding costs, then held them steady in August and September. With the October freeze, rates have now remained unchanged for three consecutive months since the July increase. An HF official stated, "We will continue to strengthen the role of the policy mortgage so that we can support genuine homebuyers in securing stable housing."