Most common rate reaches 3.460%
Japan Housing Finance Agency data for funds received in September 2026 show that Flat 35 loans with terms of 21 to 35 years and loan-to-value ratios of 90% or less are offered in a range of 3.460% to 5.690%, with 3.460% the most common rate. For loan-to-value ratios above 90%, the range is 3.570% to 5.800% and the most common rate is 3.570%. The comparable most-common rate for loans at 90% LTV or below was 3.290% in August, meaning a 0.17-percentage-point monthly increase. Higher long-term fixed rates increase both monthly payments and total financing costs, especially in high-priced metropolitan housing markets.
Loan structure matters alongside property price
Flat 35 rates vary by lender and fee structure, so the lowest or most common interest rate alone does not determine total borrowing cost. Some borrowers may also qualify for interest-rate reductions linked to housing performance or household characteristics. Buyers need to compare interest rates, fees, insurance, equity contribution and maturity together. Foreign and non-resident buyers should note that access to Flat 35 and ordinary domestic mortgages is not automatic and depends on residency, income and lender underwriting rules. The September rate therefore serves both as a direct financing benchmark for eligible households and a broader indicator of Japan's changing mortgage environment.