Flat 35 (full fixed)<\/strong><\/td>6.8%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nVariable’s dominance has held steady through three BoJ hikes \u2014 but the trend within fixed-period borrowers has shifted notably toward longer lock-in terms. In 2022, most fixed-period borrowers chose 3- or 5-year products. By late 2025, the 10-year option had become the most common, suggesting borrowers expect rates to keep climbing.<\/p>\n\n\n\n
The takeaway:<\/strong> Even as the variable share holds, the people choosing fixed are choosing longer<\/em> fixed. That’s a market signal worth paying attention to.<\/p>\n\n\n\nData source: JHF Mortgage User Survey, H2 2025 release.<\/em><\/p>\n\n\n\nSmart strategies for buying property in Japan.<\/p>\n\n\n\n
<\/span>Flat 35 Monthly Rate History (Jan\u2013Apr 2026)<\/span><\/h2>\n\n\n\nFlat 35 is the JHF-backed full-term fixed mortgage available through over 300 partner lenders. Its rate is set monthly. Here’s the 2026 trajectory for the most common product (loan-to-value \u2264 90%, 21\u201335 year term):<\/p>\n\n\n\nMonth<\/th> Most Common Rate<\/th><\/tr><\/thead> April 2026<\/td> 2.40%<\/td><\/tr> May 2026<\/td> ~2.6%*<\/td><\/tr> June 2026<\/td> ~2.9%*<\/td><\/tr> July 2026<\/td> ~3.1%*<\/td><\/tr> August 2026<\/strong><\/td>3.290%<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\nThe “Lowest Rate” column reflects the most competitive lender for that month; the “Most Common Rate” is the modal offer across the lender network; the “Highest Rate” represents lenders with smaller funding bases.<\/p>\n\n\n\n
Source: Japan Housing Finance Agency monthly rate publication.<\/em><\/p>\n\n\n\nFor most foreign borrowers, expect to land near the “Most Common Rate” column \u2014 competitive lenders typically reserve their lowest tier for borrowers with PR status and 20%+ down payment.<\/p>\n\n\n\n
<\/span>If You Already Have a Variable-Rate Loan: The 5-Year & 125% Rules<\/span><\/h2>\n\n\n\nIf you signed a variable-rate mortgage before December 2025, two protective clauses cushion the impact of BoJ hikes \u2014 but they don’t make the cost go away.<\/p>\n\n\n\n
<\/span>The 5-Year Rule (5\u5e74\u30eb\u30fc\u30eb)<\/strong><\/span><\/h3>\n\n\n\nYour monthly repayment amount is fixed for five years<\/strong>, even if the underlying interest rate rises during that period. What changes is the split between principal and interest<\/strong> \u2014 more of each payment goes to interest, less to principal.<\/p>\n\n\n\nThis means: in the short term, your bank statement looks unchanged. In the long term, you’re paying down principal more slowly, so the loan ends up costing more total.<\/p>\n\n\n\n
<\/span>The 125% Rule (125%\u30eb\u30fc\u30eb)<\/strong><\/span><\/h3>\n\n\n\nWhen your 5-year period resets and a new monthly payment is calculated, the new payment cannot exceed 125% of the previous payment<\/strong>. So even if rates spike dramatically, your monthly bill can’t more than double in a 5-year window.<\/p>\n\n\n\nThe catch: if the calculated payment would<\/em> have exceeded 125%, the unpaid interest doesn’t disappear \u2014 it accrues as a balloon owed at the end of the loan term. For most borrowers this is unlikely to materialize at current BoJ pace, but it’s a real risk if rates climb above 2.5%.<\/p>\n\n\n\n<\/span>When does my rate adjustment kick in?<\/strong><\/span><\/h3>\n\n\n\nMost Japanese banks use a “Standard Date” (\u57fa\u6e96\u65e5) system to recalculate variable rates twice a year \u2014 typically April 1st and October 1st<\/strong>. The new rate then applies starting with the next billing cycle. For most borrowers affected by the December 2025 BoJ hike, the rate adjustment shows up in the July 2026 statement<\/strong>.<\/p>\n\n\n\n<\/span>Foreigner Eligibility: How to Qualify in 2026<\/span><\/h2>\n\n\n\nForeign residents face stricter loan criteria than Japanese citizens, but a Japanese mortgage is absolutely achievable \u2014 and the rate you’ll pay is usually within 0.10\u20130.15% of the citizen rate, not double or triple. Here’s the realistic 2026 picture by visa status.<\/p>\n\n\n\n
<\/span>Permanent Resident (\u6c38\u4f4f\u6a29) \u2014 Tier 1 access<\/strong><\/span><\/h3>\n\n\n\nPR holders qualify for the same products and discounted rates as Japanese citizens at every megabank. Down payment requirements drop to 10\u201320%, and loan-to-income ratios stretch to 7\u20138\u00d7 annual salary. If you’re seriously considering a Japan property purchase, getting PR first is the single biggest financial lever available.<\/p>\n\n\n\n
<\/span>Spouse Visa (\u65e5\u672c\u4eba\u306e\u914d\u5076\u8005) \u2014 Tier 1 access<\/strong><\/span><\/h3>\n\n\n\nSpouse visa holders are treated nearly identically to PR for loan purposes at most major banks. The Japanese spouse may need to co-sign, depending on the bank.<\/p>\n\n\n\n
<\/span>Working Visa (\u6280\u8853\u30fb\u4eba\u6587\u77e5\u8b58\u30fb\u56fd\u969b\u696d\u52d9) \u2014 Tier 2 access<\/strong><\/span><\/h3>\n\n\n\nWorking visa holders can borrow at megabanks, but expect:<\/p>\n\n\n\n
\nDown payment of 20\u201330%<\/strong> (vs. 10\u201320% for PR)<\/li>\n\n\n\nLoan-to-income capped at 5\u20136\u00d7<\/strong> salary (vs. 7\u20138\u00d7)<\/li>\n\n\n\nMinimum 3 years tenure<\/strong> in Japan, often 5 years<\/li>\n\n\n\nAnnual income above \u00a55M<\/strong> for most lenders (\u00a57M+ to access best rates)<\/li>\n<\/ul>\n\n\n\nIf you’re not yet eligible at a megabank, Flat 35 is your best alternative<\/strong> \u2014 it accepts working visa holders with shorter Japan history and softer income tests.<\/p>\n\n\n\n<\/span>Other Visas (Student, Working Holiday, Designated Activities)<\/strong>