The Korea Housing Finance Corporation will raise the interest rates on its home loan program for the first time in four months. This adjustment reflects rising market rates and funding costs, pushing the lowest rate into the 5% range.
The corporation announced on November 2 that it will increase the interest rates on its long-term, fixed-rate, amortized home loans by 0.10 percentage points starting November 9.
This marks the sixth increase this year, following a 0.30 percentage point hike in July. The corporation had kept rates steady from August to October but has decided to raise them again this month.
As a result, the interest rate for the 'Akkime e-Home Loan' will rise from the previous range of 4.90-5.20% to 5.00-5.30%. For different maturities, the rates will be 5.00% for 10 years and 5.30% for 50 years.
Socially vulnerable groups, including low-income youth, newlywed couples, disabled individuals, and single-parent families, as well as victims of rental fraud, will be eligible for a preferential interest rate of up to 1.0 percentage point. With all discounts applied, they can secure loans at rates as low as 4.00-4.30% annually.
A representative from the corporation stated, "We have slightly increased the rates after considering market interest rates and the funding conditions for mortgage-backed securities (MBS). We will continue to closely monitor market conditions to minimize the financial burden on low-income and genuine borrowers."
However, those who complete their applications for the home loan by November 8 will still be able to benefit from the previous lower rates.
* This article has been translated by AI.
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