Home loan rates to rise again in July

Four major Japanese banks (Bank of Tokyo-Mitsubishi UFJ, Mizuho, Sumitomo Mitsui and Resona) have announced that they will be increasing their prime interest rates on their 10-year fixed rate home loans this month.

Mizuho are increasing their rates by 0.05 points to 1.65%, while the other three banks are increasing their rates by 0.1 points to 1.70%.Read more

Home loan rates to rise in June

Banks are reporting a surge in inquiries from potential borrowers as interest rates are expected to rise next month. Customers are desperate to lock in mortgages at current rates, but it may already be too late for some.

Next month, Sony Bank will increase their 10-year fixed-rate home loan from 1.406% to 1.692%. As their home loan approvals typically take 1.5 months to process, any applications received now will be approved at the prevailing rates in July. Other major banks such as MUFJ and Mizuho may increase their 10-year fixed-rates to 1.50% next month, but they could go as high as 1.60%.Read more

End of mortgage moratorium means foreclosures set to rise

At the end of March 2013, the home loan moratorium expired, creating potential for a mortgage crisis in Japan. Households struggling to make repayments are beginning to panic as forecasts suggest interest rates are set to rise.

While banks are not likely to immediately foreclose on all late-payers, there is a chance we will see an increase in bank foreclosures on well-located properties in the later half of 2013 if land prices increase.Read more

Tougher times for home loan approvals

This current period of low-interest rate competition is considered an unprecedented point of time in Japan's history of property finance. But, rather than low interest rates signaling an ease to borrow, banks are becoming increasingly strict over loan approvals.Read more

Foreclosures set to increase as more borrowers report difficulty making mortgage payments

The number of home-owners in Japan who are falling behind in mortgage payments and relinquishing their homes are increasing. According to the Fudosan Keibai Ryutsu Association (FKR), the number of foreclosed properties in 2010 was 51,746. This was a decrease of 7,000 from 2009, but is still at a high level.Read more

Japanese home loan approval process becoming more difficult

The thorn in the side of the apartment market recovery

In March, 2011, the risk of holding real estate was actualized when the earthquake caused liquefaction alongside Tokyo Bay and led to a temporary period of restrained buying. Although the events of March will not soon be forgotten, there are signs that buyers are starting to return to the market with several new projects attracting a large number of inquiries and achieving good sales.Read more

Bank of China to offer home loans to Chinese residents in Japan

Mitsui Real Estate Sales announced on August 24th that they have tied up with the Bank of China (BOC) to provide mortgages for Japanese properties to Chinese residents in Japan.

The new loan product was introduced by the BOC in June, 2011, and is aimed at Chinese who currently reside in Japan but do not have Japanese citizenship. Domestic Japanese banks can also provide financing but they have much stricter terms and conditions. The BOC aims to lower the hurdles to borrowing.Read more