Application for Fixed-rate Government-sponsored Mortgage Loan Available from January 30Jan 11, 2023

The FSC announced that special Bogeumjari Loan, which integrates Relief Conversion Loan and Conforming Loan with existing Bogeumjari Loan, will be available for one year starting from January 30, 2023.


For houses valued at KRW900 million or less, eligible applicants can borrow up to KRW500 million in loans, irrespective of their income, within the maximum loan-to-value (LTV) and debt-to-income (DTI) ratios. Interest rates that are lower than those for conventional mortgage loans will be applied from the end of January (4.65~4.95 percent for borrowers with house valued at KRW600 million or less and total married couple’s income of KRW100 million or less, 4.75~5.05 percent for borrowers with house valued in excess of KRW600 million and income surpassing KRW100 million), while adjustment will be made, when it becomes necessary, depending on the status of market interest rate, funding availability of Korea Housing Finance Corporation, etc.




With increases in market rates gradually being reflected in interest rates on loans, interest burdens are rising rapidly on lower income households and non-speculative homebuyers. Therefore, in order to provide assistance to lower income households and non-speculative homebuyers for their home ownership and improve the qualitative structure of household debt by making them less sensitive to changes in interest rates, it is necessary to expand the availability of government-sponsored mortgage loans with fixed interest rate.


Details of Special Bogeumjari Loan


I. Eligibility


a) (House Price)  Up to KRW900 million


b) (Income)  Unlike the income requirement for existing Bogeumjari Loan (up to KRW70 million income threshold), there will be no income restriction applied.


c) (Purpose)  For purchasing a new house, replacing existing loans or returning security deposits


d) (Homeownership Status)  No-home owners (for purchasing a new house) and one-home owners (for replacing existing loans or returning security deposits) can apply.


II. Details of Support


a) (Loan Limit)  Applicants can receive maximum KRW500 million in loan.


- (Loan-to-Value Ratio)  Within maximum 70 percent (maximum 80 percent for first-time homebuyers)

- (Debt-to-Income Ratio)  Within maximum 60 percent (with no debt service ratio being applied)


b) (Maturity)  Applicants can choose from six different maturity terms—10-year, 15-year, 20-year, 30-year, 40-year and 50-year.


c) (Interest Rates)  The base borrowing rate is different by types—a preferential-loan type (4.65~4.95%) and a general-loan type (4.75~5.05 percent)—while rate reduction of up to 90 bps may be granted separately.


- (Concessionary Rate)  A 10-bp reduction in interest rate will be newly offered to young adults with low income background, and depending on borrowers’ circumstances, maximum 90 bps in rate reduction will be possible.


Application of rate reductions can help reduce borrowing rates to as low as 3.75~4.05 percent.

Rate reduction for concessionary rate = Existing Bogeumjari Loan signed up electronically (10 bps) + Others combined (all criteria shown in the table above, but maximum 80 bps)


d) (Early Repayment Charge)  Early repayment charge will be exempted for borrowers who are switching from an existing mortgage loan to special Bogeumjari Loan, as well as for those making repayments on special Bogeumjari Loan before maturity.


III. Size of Support


The total size of special Bogeumjari Loan supplied will be KRW39.6 trillion for a year.



How to Apply & Notice for Borrowers


Applicants can visit Korea Housing Finance Corporation’s website ( or its mobile application to apply for special Bogeumjari Loan.


Borrowers are advised to note that their permissible loan amount will be whichever is the lesser amount between the LTV ratio-applied value and the maximum loan limit. Borrowers should also keep in mind that they need to strictly abide by the one-home ownership rule when they are using special Bogeumjari Loan.

* Please refer to the attached PDF for details.