Banks to reduce home loan rates in September

Four of Japan’s major banks announced that they will be reducing interest rates on new home loans this month.

The Bank of Tokyo-Mitsubishi UFJ will reduce the prime rate on their 10-year fixed-rate home loan by 0.05 points to 0.75%. Mitsui Sumitomo Banking Corporation, Mizuho Bank and Resona Bank will also reduce the rates on their 10-year fixed-rate loans by 0.05 points. Sumitomo Mitsui Trust Bank will leave their rates at their current level of 0.70%.

Mizuho to offer home loans for same-sex couples

Mizuho Bank is now the first bank in Japan to offer home loans for same-sex couples. Up until now, home buyers would have had to obtain a loan under a single borrower’s name where the loan amount was limited by the single borrower’s income.

The home loan product is currently only available to residents in Shibuya Ward who have obtained a same-sex partnership certificate from the Shibuya local government office. The bank is considering expanding the loan to other districts as they begin to recognize LGBT partnerships.

Setagaya ward in Tokyo and Sapporo in Hokkaido also recognize same-sex partnerships. There were 18 certificates issued to couples in Shibuya ward as at March 2017, and 50 issued in Setagaya ward.

Sources:
Jiji Press, July 6, 2017.
Mizuho Bank News Release, July 6, 2017.

Home loan interest rates to rise in January

In January, several of Japan’s major retail banks will increase the interest rates on their home loans.

The Bank of Tokyo-Mitsubishi UFJ will increase the prime interest rate on their 10-year fixed rate home loan by 0.05 points to 0.65%. This is their first rate increase in four months. Sumitomo Mitsui Trust Bank will increase their 10-year fixed rate by 0.05 points to 0.50%. Their 10-year rate reached a low of 0.35% in August 2016. Resona Bank and Mitsui Sumitomo Banking Corporation will increase their rates by 0.05 points to 0.90% and 0.85%. 

Home loan interest rates set to rise this month

Several of Japan’s main banks will be increasing the interest rates offered on their fixed-rate home loans this month.

Mizuho Bank will increase their 10-year fixed interest rate by 0.1 points to 0.80%. This is 0.15 points higher than the historic low of 0.65% reached in August 2016. Sumitomo Mitsui Trust Bank will increase prime rates for 15 ~ 30-year fixed-rate home loans by 0.1 points from last month to 0.85 ~ 0.95%, but will leave their 10-year fixed rates at 0.45%. The Bank of Tokyo-Mitsubishi UFJ will leave their 10-year rate at 0.60%.

Real estate company president and buyer arrested for mortgage fraud

On November 25, the Osaka Prefectural Police arrested the president of an Osaka-based real estate company and one of their customers for alleged mortgage fraud.

The police claim that the company boss produced false income certificates that were almost-perfect forgeries of official documents issued by local governments. Of the 190 loans obtained for the company’s clients, 150 were reportedly obtained using forged income documents. The majority of the buyers have been making mortgage repayments without any problems.

Banks to reduce interest rates in June

Several of Japan’s mega-banks will reduce the interest rates offered on new home loans this month.

Both the Bank of Tokyo-Mitsubishi UFJ (MUFJ) and Sumitomo Mitsui Banking Corporation (SMBC) will reduce the prime rate on their 10-year fixed-rate mortgages by 0.05 points to 0.85%. Sumitomo Mitsui trust Bank will reduce their rate by 0.05 points to a record low of 0.50%.

Home loan variable-rates drop below 0.5%

Sony Bank will reduce their variable home loan interest rates to 0.499% from April 2016. With the exception of banks offering campaign discounts, this makes Sony the first bank to reduce rates below the 0.5% range. After the Bank of Japan introduced negative interest rates in February, retail banks have been lowering interest rates offered to consumers. Until recently, banks were only reducing interest rates on fixed-rate loans, but it is now spreading to variable rate plans as well.

BOJ’s minus interest rate may result in lower home loan rates

Following the Bank of Japan’s surprise announcement to set interest rates at minus 0.1%, Japan’s retail banks have started to make moves to lower home loan interest rates.

The Bank of Tokyo-Mitsubishi UFJ (MUFJ), Sumitomo Mitsui Banking Corporation (SMBC) and Resona Bank plan to reduce the prime rate on their 10-year fixed-rate home loans by 0.05 points to 1.05%.