Mizuho Bank to offer home equity loans
Mizuho Bank are now offering home equity loans of up to 10 million Yen to home owners. Mizuho is the first of Japan’s three mega-banks (Mizuho, MUFJ and SMBC) to offer a home equity financing.
Interest rates are floating and were 2.975% in August. This rate is lower than their rates for personal loans. Customers of Mizuho with existing home loans may receive a rate of 2.675%.
Loans range from 1 ~ 10 million Yen and will be determined based on the equity in the property and the borrower’s financial position. Borrowers can use the funds freely, but cannot put them towards company capital or the purchase of financial products.
Sources:
The Nikkei Shimbun, August 21, 2014.
The Sankei Shimbun, August 21, 2014.
Mizuho Bank Home Equity Loan page