Compare Mortgages in Japan

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21 live offers compared from 14 providers, from 0.29 ％ イニシャル. Updated daily.

What are mortgages in Japan?

A mortgage (jutaku loan) in Japan is a long-term secured loan to buy a home, typically repaid over 25 to 35 years. What makes the Japanese market distinctive is how low borrowing costs are: variable rates from the leading online lenders sit well under 1%, and even long fixed rates are modest by global standards. Borrowers choose between variable rates, fixed-for-a-period rates, and the government-backed Flat 35 fully fixed product.

How the Japanese market works

Lending is split between online-first banks that lead on rate, megabanks that bundle mortgages with a full banking relationship, and the Flat 35 programme administered with the Japan Housing Finance Agency. Online lenders such as SBI Sumishin Net Bank and Sony Bank routinely post the lowest variable rates, while MUFG Bank, Mizuho Bank, SMBC, Resona Bank and Japan Post Bank compete on branch service, pre-approval speed and packaged discounts. Developers like Nomura Real Estate also arrange financing tied to new-build purchases.

Benefits

Very low headline rates — leading variable products start around 0.29% to 0.5%, among the cheapest home loans in the developed world.

Mortgage tax credit — the jutaku loan deduction lets eligible buyers subtract a portion of the year-end loan balance from income tax for a set number of years.

Bundled life cover — most loans include group credit life insurance (dan-shin) that repays the balance if the borrower dies or becomes severely disabled.

How to choose

Decide first between variable and fixed: variable rates are lowest today but can rise, while Flat 35 locks certainty for the full term. Compare the effective rate after any relationship discounts, the administrative and guarantee fees, the dan-shin cover included, and prepayment terms. Model your repayment against a higher-rate scenario if you take a variable loan, and factor the down payment — many lenders reward a larger deposit with a better rate.

Leading providers in Japan

SBI Sumishin Net Bank and Sony Bank are the online rate leaders with slick digital applications. MUFG Bank, Mizuho Bank, SMBC and Resona Bank are the established megabank and regional choices for borrowers who want in-branch guidance. Japan Post Bank offers wide nationwide reach, and Nomura Real Estate arranges purchase financing for its developments.

What it costs

Interest ranges from roughly 0.29% on the sharpest variable deals to around 1.5% to 2% on long fixed terms. On top of interest you typically pay an administrative fee (often a percentage of the loan or a flat sum such as tens of thousands of yen), a guarantee fee, registration and stamp taxes, and fire insurance on the property. Total upfront costs commonly run to several percent of the purchase price.

Protections and regulation

Mortgage lenders are banks supervised by the Financial Services Agency (FSA), and lending conduct falls under the Banking Act and consumer-protection rules. The included dan-shin group credit life insurance is a core borrower protection. Flat 35 is backed by the Japan Housing Finance Agency, giving fixed-rate certainty for households that prioritise predictable payments.

Common questions

Can foreign residents get a mortgage? Yes, though most lenders expect permanent residency or a long-term visa, stable income and often a Japanese guarantor or larger deposit.

Is variable or Flat 35 better? Variable wins on today's rate; Flat 35 wins on certainty. The right choice depends on how much rate risk your household budget can absorb over the coming decades.

Mortgages in Japan — FAQ