Home loan interest rates set to rise this month
Several of Japan’s main banks will be increasing the interest rates offered on their fixed-rate home loans this month.
Mizuho Bank will increase their 10-year fixed interest rate by 0.1 points to 0.80%. This is 0.15 points higher than the historic low of 0.65% reached in August 2016. Sumitomo Mitsui Trust Bank will increase prime rates for 15 ~ 30-year fixed-rate home loans by 0.1 points from last month to 0.85 ~ 0.95%, but will leave their 10-year fixed rates at 0.45%. The Bank of Tokyo-Mitsubishi UFJ will leave their 10-year rate at 0.60%.Read more
Five banks to reduce home loan interest rates in August
Five of Japan’s mega-banks will reduce the interest rates on their home loans this month.
The 10-year fixed-term interest rates on home loans for new customers will be reduced between 0.05 to 0.10 points from last month, reaching record lows.Read more
MUFJ reduces home loan interest rate to 0.55% in July
The Bank of Tokyo-Mitsubishi UFJ (MUFJ) will reduce the prime rate on their 10-year fixed-rate mortgage by 0.30 points from June to 0.55% for home loans obtained from July 2016 onwards. This is the biggest discount in rates for the bank since April 2009 and is a historical low.Read more
BOJ’s minus interest rate may result in lower home loan rates
Following the Bank of Japan’s surprise announcement to set interest rates at minus 0.1%, Japan’s retail banks have started to make moves to lower home loan interest rates.
The Bank of Tokyo-Mitsubishi UFJ (MUFJ), Sumitomo Mitsui Banking Corporation (SMBC) and Resona Bank plan to reduce the prime rate on their 10-year fixed-rate home loans by 0.05 points to 1.05%.Read more
Banks to reduce interest rates in September
Five of Japan’s mega-banks will reduce interest rates on home loans this month due to increased competition and a relatively low long-term government bond yield.
The Bank of Tokyo-Mitsubishi UFJ (MUFJ) and Sumitomo Mitsui Banking Corporation (SMBC) will reduce their prime rate for a 10-year fixed-rate mortgage by 0.1 points to 1.20%. Mizuho Bank will reduce their 10-year fixed-rate by 0.05 points to 1.20%.Read more
Banks to increase home loan rates this month
Several of Japan’s mega-banks plan to increase home loan interest rates this month. The Bank of Tokyo-Mitsubishi UFJ will increase the prime interest rate on their 10-year fixed-rate home loan by 0.10 points to 1.35% for loans approved in July, while Mizuho plan to increase their rate by 0.05 points to 1.30%. Sumitomo Mitsui Trust Bank also plan to increase their prime rate by 0.05 points to 0.95%.
This is the second month to see an increase in interest rates The three banks have no plans to change their variable rates.
Sources:
The Nikkei Shimbun, June 26, 2015.
Jiji Press, June 26, 2015.
New home loan product for married couples
From April 13, Sumitomo Mitsui Banking Corporation (SMBC) began offering a new type of home loan for married couples that offers an additional life insurance component. In the event that one of the spouses dies during the term of the loan, the surviving spouse, who must also be a borrower, will be exempt from paying off the remainder of the loan.
The loan was introduced to cater to a growing number of families with two working spouses. According to the Japan Institute for Labour Policy and Training, there were 10.65 million double-income households in Japan, up 10% over the past 10 years. Almost 20% of SMBC’s home loan clients are borrowing in both spouses names.Read more