Mizuho and Sumitomo Mitsui to lower interest rates

Mizuho Bank and Sumitomo Mitsui Trust Bank are lowering their prime lending rates on home loans this month.

Mizuho is reducing the interest rate on their variable and fixed-type mortgages by 0.1%, while Sumitomo Mitsui will be reducing their variable rate from 0.775% to 0.725%. This will be the first time since November 2010 that Sumitomo Mitsui has reduced their variable rate.

Mizuho’s variable rate will be reduced from 0.875% to 0.775%, and the 10-year fixed rate will be reduced from 1.65% to 1.55%.

In the past few months, major banks have increased the interest rates on 10-year fixed rate home loans. However, growing demand from consumers looking to purchase before the planned consumption tax increase in 2014 has led to increased competition between banks looking to attract more customers.

Source: The Sankei Shimbun, August 8, 2013.

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