Do you know what is the current mortgage rate if you wish to purchase a house to live in Japan?
Yesterday I happened to receive a heads-up on the latest mortgage rates from SBI Sumishin Net Bank, who now applies 0.507% (including costs) for floating rate and 1.16% for 20-year fixed rate to new housing loan application in January 2018. Overall, the levels have unchanged over the last year. But please note, in the case of SBI Sumishin Net, the suggested low rates will only be applied for a certain period of time and will be likely to be up later.
The most practical levels may be 2.475% for floating rate and 3.25% for 10-year fixed rate suggested by Japan Housing Finance Agency (http://www.flat35.com/loan/atoz/06.html). The former has remained the same over the last 9 years while the latter picked up about a few years ago.
Meanwhile, what are the rates for property investment loan? The table below summarizes the current rates and terms of property investment loan offered by some of the banks I mentioned in the previous article (http://bizliaison.jp/archives/209).
Bank names are masked as they are our day-to-day contacts. And part of the information above is not publicly available from their websites or promotion materials. If you are interested to know who they are, why not asking your property agent? They should be knowledgeable about the current terms of property loan in Japan.
Compared to the mortgage loan, the rates appear to be reasonable. But again please note there are banks who suggest much higher rates like 4.5% for the properties with somewhat irregular features. Irregular features may include property site far away from Greater Tokyo, old property, illegal construction (e.g. over the limit of floor-area ratio or building coverage ratio), etc. Or such banks may not request the borrowers for strict qualifications.
For further comments on the table, please see the next article, which will be posted soon…