Most common 21-35 year rate is 3.460%
Japan Housing Finance Agency's September 2026 rate information shows that Flat 35 mortgages with terms of 21 to 35 years and loan-to-value ratios of 90% or less are offered at rates ranging from 3.460% to 5.690%, with 3.460% the most common rate among participating lenders. For financing above 90% of the property's value, the most common rate is 3.570%. Flat 20 loans with terms of 15 to 20 years have a most common rate of 3.140% at loan-to-value ratios of 90% or less. Flat 35 fixes the borrowing rate for the full term.
Buyers face both high property prices and financing costs
In markets such as Tokyo, elevated home prices mean the principal borrowed can be as important as the quoted mortgage rate. Even if interest rates are unchanged, a larger purchase price raises monthly payments and total repayment costs. A larger down payment can reduce the loan-to-value ratio and may place the borrower in a different Flat 35 pricing category. Rather than starting solely with a target property price, prospective buyers should determine a sustainable borrowing amount from monthly cash flow and long-term repayment capacity.
Flat 35 cannot finance investment property
Flat 35 is an owner-occupier mortgage intended for homes occupied by the borrower or qualifying family members. Japan Housing Finance Agency explicitly states that it cannot be used to acquire investment property. Domestic and overseas investors buying units for rental therefore need separate investment financing or equity. Mortgage eligibility for foreign residents also differs by bank and can depend on residence status, income in Japan and permanent-resident status. Flat 35 remains a useful benchmark for Japan's long-term fixed mortgage environment, but eligibility should be considered separately.