Most common 21-35 year rate is 3.46%
The Japan Housing Finance Agency’s September 1 update shows that Flat 35 loans with maturities from 21 to 35 years are offered at 3.46% to 5.69%, with 3.46% the most common rate. The most common rate is 3.14% for 15-20 year loans and 3.70% for 36-50 year products. Flat 35 fixes the borrowing rate and scheduled payments for the full loan term, protecting borrowers from future increases in variable mortgage rates.
Discount programs can reduce the initial rate
The agency also operates a point-based rate reduction system linked to factors such as household composition and housing performance. In its September example, a borrower receiving a total four points and a 1.0 percentage-point reduction pays 2.46% for the first five years on a Flat 35 loan before the rate returns to 3.46%. Energy-efficient housing, including qualifying ZEH properties, can contribute to available reductions.
Buyers face both higher prices and financing costs
Japan’s housing market is increasingly shaped by the combination of higher property prices and higher borrowing costs. For large loans, particularly in Tokyo, relatively small rate differences can materially change total repayment amounts. Foreign nationals should also note that mortgage eligibility depends on lender criteria, residency and income circumstances. Flat 35 is specifically not available for the acquisition of investment properties.