Flat 35 Most Common Rate Is 3.29% for 21-35 Year Loans in August 2026

The most common 21-35 year rate is 3.29% at 90% LTV or below

Japan Housing Finance Agency data for funds received in August 2026 show that Flat 35 loans with new agency group credit life insurance and terms of 21 to 35 years carry rates ranging from 3.290% to 5.570% when the loan-to-value ratio is 90% or less. The most common rate is 3.290%. Above 90% financing, the range is 3.400% to 5.680% and the most common rate is 3.400%. For Flat 20, the most common rate is 2.970% at 90% LTV or less and 3.080% above 90%.

Even small rate differences matter at high purchase prices

When a home costs tens of millions of yen or more, differences in interest rates affect not only monthly payments but also total repayment over 20 or 30 years. The higher most-common rate above the 90% financing threshold also means the amount of buyer equity can affect borrowing conditions. Owners must additionally budget for condominium management fees, repair reserves, fixed-asset tax, insurance and equipment replacement. A lender's maximum approved loan should not automatically be treated as a household's sustainable property budget.

Flat 35 cannot be used to finance investment properties

Japan Housing Finance Agency explicitly states that Flat 35 cannot be used to acquire investment property. International investors therefore should not use the 3.29% home-loan rate as an assumption for financing a rental condominium or income-producing apartment building. The legal ability of a foreign national to own Japanese real estate is also separate from mortgage eligibility. Actual underwriting can depend on residence circumstances, income, equity contribution, property characteristics and lender policy, making it important to distinguish owner-occupied housing finance from investment lending.