Japan’s four leading mega-banks will be increasing their advertised interest rates on home loans this month. When the Bank of Japan introduced minus interest rates in February 2016, retail banks began to gradually reduce their long-term fixed interest rates on home loans. However, recent shifts in monetary easing policy may see home loan interest rates shift to an upwards trend.
MUFG Bank, Mizuho Bank, Sumitomo Mitsui Bank, and Sumitomo Mitsui Trust Bank will all increase the prime interest rate on their 10-year fixed rate home loans by 0.05 points in September. Resona Bank plans to leave their rate at 0.75%.
10-year fixed-rates (prime rates):
- MUFG: 0.90%
- Mizuho: 0.90%
- Sumitomo Mitsui: 1.20%
- Sumitomo Mitsui Trust: 0.85%
Fixed-term interest rates offered on home loans typically follow movements in the 10-year government bond yield. As of July 2018, the 10-year government bond yield was 0.105%. 12 months ago it was in negative territory. In September 2008 it was as high as 1.5%.
The Nikkei Shimbun, August 31, 2018.
The Yomiuri Shimbun, September 2, 2018.
1,095 total views, 3 views today