The most common Flat 35 rate is 3.46%
According to the official Flat 35 website, the most common September 2026 rate for Flat 35 loans with a loan-to-value ratio of 90% or less and new JHF group credit life insurance is 3.46% per year. The comparable figures shown for Flat 20 and Flat 50 are 3.14% and 3.70%. A model borrower receiving a total four-point rate reduction, equivalent to a 1.0 percentage-point discount, would see a displayed Flat 35 rate of 2.46% during the first five years. Actual rates and eligibility vary by lender and borrower.
Higher borrowing costs reduce purchasing capacity
A higher mortgage rate increases both monthly payments and total borrowing costs for the same principal amount. Fixed-rate products offer payment visibility, but borrowers still face a higher initial burden when market rates rise. When mortgage rates increase at the same time as apartment prices, affordability is squeezed from both directions. This can affect not only buyers but also sellers of higher-priced homes because potential purchasers may qualify for smaller loans. Financing conditions are therefore becoming an increasingly important indicator of residential demand.
Flat 35 cannot be used for investment properties
The Flat 35 website explicitly states that the program cannot be used to finance investment properties. It is designed for homes occupied by the applicant or qualifying family members. Foreign residents considering a Japanese home loan may also face lender-specific requirements concerning residency status, income, employment and permanent residency. This market is distinct from financing available to non-resident property investors. For owner-occupiers, September's rate level is therefore as important to the purchase budget as the headline property price.