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.

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