Tokyo Star Bank considering home loans for wealthy Taiwanese

In an interview with the Sankei Shimbun on October 20, Mr. Pin-kung Chiang, Chairman of the Board at Tokyo Star Bank, mentioned that the bank was considering offering low-interest home loans to wealthy Taiwanese for the purchase of real estate in Japan.

While Taiwan has seen steep increases in home prices, the Japanese property market has remained relatively stable for the past 20 years. With the weakening Yen and 2020 Summer Olylmpics, Taiwanese are becoming more and more attracted to real estate in Tokyo, particularly high-rise apartments. Mr. Chiang said that buyers are not only interested in properties for investment, but are also looking at homes to use as a base when they visit Tokyo.

Source: The Sankei Shimbun, October 21, 2014.

by Zoe Ward

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

by Zoe Ward

Tax breaks and better home loan rates to boost Japan's second-hand home market

Journal Standard Renoveru 2
A renovated apartment in Kawasaki City by Renoveru (a collaboration between Journal Standard Furniture and ACME).

As part of a plan to support and boost the market for used homes, the Japanese government is considering introducing measures to encourage lower interest rates on mortgages that include a component for renovations as well as tax benefits for buyers of older homes.

Although there is growing demand from consumers for relatively cheaper existing homes, more than half require some form of work such as earthquake-retrofitting or upgrades to make them barrier-free for older occupants. It is hoped that easier financing will encourage more consumers to consider older homes and reduce the number of vacant homes across the country.

Expanding the Flat 35 Home Loan

The Japan Housing Finance Agency’s ‘Flat 35’ home loan offers interest rates from as low as 1.69%. Although the loan can be used for both new and old properties, it may soon be expanded to provide additional financing for renovation costs at the time of purchase.Read more

by Zoe Ward

More borrowers choosing full-term fixed rate home loans

According to the latest survey by the Japan Housing Finance Agency, the percentage of borrowers choosing a fixed interest rate for the entire duration of their home loan was 31.7% between November 2013 and February 2014, up 6.4 points from the previous period and up 8.6 points from the same period last year. The percentage of borrowers electing for a floating interest rate dropped 4.2 points from the previous period to 37.1%. Read more

by Zoe Ward

Major banks to raise interest rates this month

The Bank of Tokyo-Mitsubishi UFJ (MUFG) and other major Japanese banks will be raising the prime rate on their 10-year fixed-rate home loans this month. Read more

by Zoe Ward

MUFG to offer reverse mortgages

The Bank of Tokyo-Mitsubishi UFJ (MUFG) will begin offering reverse mortgages this month.

While the majority of reverse mortgages in Japan are only based on the value of the land (due to the low value given to older buildings), MUFG's mortgages can also apply to homes and apartments.Read more

by Zoe Ward

Mizuho reducing home loan interest rates to 0.55%

In an effort to attract borrowers looking to purchase before the increase in the consumption tax rate, Mizuho Bank announced that they will be lowering their prime interest rate on their 2-year fixed-rate mortgage from its current level of 0.95% to 0.55%. The ultra-low interest rate campaign will be offered until the end of March 2014. It is possible that other banks will soon follow.

Mizuho and two other banks have also lowered the prime rates on their 3-year fixed-rate mortgages to 0.60%.

Source: The Nikkei Shimbun, January 9, 2014.

by Zoe Ward