Four of Japan’s leading banks will be increasing their advertised interest rates on home loans this month. This is in response to an increase in the 10-year government bond yield.
Sumitomo Mitsui Trust Bank, Sumitomo Mitsui Bank, Mitsubishi UFJ, and Mizuho Bank will raise the prime interest rate on their 10-year fixed-rate home loans between 0.05 and 0.15 points for new loans taken out in May. Resona Bank will leave their rate unchanged at 0.70%.
10-year fixed-rates (prime rates):
- Sumitomo Mitsui Trust: 0.70% (up 0.10 points)
- Sumitomo Mitsui: 1.10% (up 0.15 points)
- Mitsubishi UFJ: 0.79% (up 0.14 points)
- Mizuho: 0.85% (up 0.05 points)
Source: Jiji Press, April 30, 2020.