Home loan interest rates rise in April

This month, the Bank of Tokyo-Mitsubishi UFJ and and Sumitomo Mitsui Banking Corporation will increase the prime interest rate on their 10-year fixed-rate home loans by 0.05 points to 1.25%. Mizuho will also increase their prime rate by 0.05 points to 1.20%. This is the second month in a row to see an increase in interest rates.

Resona will leave their prime rate at 1.20%

The minimum interest rate under the Japan Housing Finance Agency’s ‘Flat 35’ loan has increased for the second month in a row to 1.54% for loans with a term of less than 35 years. For loans less than 20 years, the minimum rate is 1.31%.

The Nikkei Shimbun, April 1, 2015.
The Sankei Shimbun, March 31, 2015.

Tokyo Star Bank offering Japan home loans to Taiwanese residents

Tokyo Star Bank is now offering financing for the purchase of real estate in Japan. The loans are available for qualified Taiwanese residents only.

The bank can provide financing for up to 60% of the value of the property and up to a maximum amount of 500 million Yen. Interest rates are around 2%. Loans can only be made to private borrowers using their own name and not companies.Read more

Home loan interest rates to rise in March

On February 25, the Bank of Tokyo-Mitsubishi UFJ announced plans to increase the prime interest rate on their 10-year fixed rate home loan by 0.1 points to 1.20% in March. This is the first time in five months to see an increase in the prime rate, although it still 0.15 points below their interest rate 12 months ago.Read more

Home loan interest rates to reach record low in January

Mizuho Bank Interest Rate

Three of Japan’s major banks are lowering the prime interest rates on their 10-year fixed rate homes loans in January.

The Bank of Tokyo-Mitsubishi UFJ and Mizuho Bank will lower interest rates by 0.1 points to 1.15%, while Sumitomo Mitsui Trust Bank will reduce their rate by 0.1 points to 0.9%. It is expected that other banks will also lower their rates.

Large-scale monetary easing by the Bank of Japan has caused the long-term interest rate to reach a record low.Read more

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.

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.

The Nikkei Shimbun, August 21, 2014.
The Sankei Shimbun, August 21, 2014.
Mizuho Bank Home Equity Loan page

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