Mizuho to offer home loans for same-sex couples

Mizuho Bank is now the first bank in Japan to offer home loans for same-sex couples. Up until now, home buyers would have had to obtain a loan under a single borrower’s name where the loan amount was limited by the single borrower’s income.

The home loan product is currently only available to residents in Shibuya Ward who have obtained a same-sex partnership certificate from the Shibuya local government office. The bank is considering expanding the loan to other districts as they begin to recognize LGBT partnerships.

Setagaya ward in Tokyo and Sapporo in Hokkaido also recognize same-sex partnerships. There were 18 certificates issued to couples in Shibuya ward as at March 2017, and 50 issued in Setagaya ward.

Jiji Press, July 6, 2017.
Mizuho Bank News Release, July 6, 2017.

Home loan interest rates to rise in January

In January, several of Japan’s major retail banks will increase the interest rates on their home loans.

The Bank of Tokyo-Mitsubishi UFJ will increase the prime interest rate on their 10-year fixed rate home loan by 0.05 points to 0.65%. This is their first rate increase in four months. Sumitomo Mitsui Trust Bank will increase their 10-year fixed rate by 0.05 points to 0.50%. Their 10-year rate reached a low of 0.35% in August 2016. Resona Bank and Mitsui Sumitomo Banking Corporation will increase their rates by 0.05 points to 0.90% and 0.85%. 

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%.

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%.

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%.

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.

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.



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