Mortgage Calculator — Japan
Estimate your monthly mortgage payment in JPY using Japan's typical rates, and see the full interest cost. No signup, no account needed.
Local rates & providers
Japan's megabanks raised their variable mortgage benchmark rates again for September 2026: Mitsubishi UFJ (MUFG) to 1.195% (still 1.195% for October 2026 loans on MUFG's own rate page); SMBC, Docomo SMTB and Rakuten Bank publish their current variable rates on their own sites. These are published benchmark rates before any individual discount. Max tenure 35 years. Providers: MUFG, SMBC, Docomo SMTB, Rakuten Bank, regional banks.
Reference figures, September 2026. Your offered rate depends on your profile, deposit and the lender. Verify current rates before deciding.
Worked example
For every JPY 1,000,000 borrowed at 1.50% over 20 years:
- Monthly payment: JPY 4,825
- Total repaid: JPY 1,158,109
- Total interest: JPY 158,109
Scale this to your loan amount — e.g. JPY 3,000,000 costs about 3× these figures. A larger deposit and shorter term cut the interest sharply.
Japan Mortgage Rates in September 2026: Megabanks Raise Variable Rates Again
Japan's major "megabanks" raised their variable mortgage rates for September 2026 following the Bank of Japan's short-term policy rate decisions earlier in the year. Mitsubishi UFJ Bank (MUFG) increased its benchmark variable rate by 0.25 percentage points to 1.195%. SMBC, Docomo SMTB (formerly SBI Sumishin) and Rakuten Bank publish their current variable rates on their own rate pages. These figures are lenders’ published benchmark ("base") rates before any individual discount a borrower may negotiate; actual contracted rates are typically lower.
On the fixed-rate side, Flat 35 — the long-term fixed-rate loan program backed by the government-affiliated Japan Housing Finance Agency (JHF) — is quoted for September 2026 disbursements at 3.460%–5.690% per year for loans up to 90% loan-to-value, and 3.570%–5.800% for loans above 90% LTV. This is reportedly the highest Flat 35 rate level since JHF began publishing comparable figures in January 2018. Check each lender's own rate page for its current variable and fixed rates.
The “5-Year Rule” and “125% Rule”: How Variable-Rate Payments Are Capped
Most Japanese variable-rate mortgages using the standard "equal principal and interest" repayment method (元利均等返済) include two consumer-protection mechanisms. Under the 5-year rule, a borrower's monthly payment amount is reviewed and can only change once every five years, even if the bank's benchmark rate moves more often; between reviews, a rate change instead shifts how much of the fixed payment goes to interest versus principal. Under the 125% rule, when the payment is recalculated, the new amount cannot exceed 125% of the prior payment, regardless of how much rates have risen.
Worked example (illustrative). On a ¥30,000,000 loan over 35 years (420 months) at 1.195% (MUFG's September 2026 benchmark), the monthly payment is about ¥87,439. If the rate rose by 2.0 points to 3.195% by the next 5-year reset, a full recalculation would call for about ¥118,745 — a 35.8% jump. The 125% rule would instead cap the new payment at ¥109,299 (125% of ¥87,439). That gap doesn't disappear: lenders generally carry the shortfall forward as unpaid interest (未押利息), added to the loan or settled at the next reset or the loan's final payment — so the rule smooths monthly cash flow but does not reduce total interest cost, and exact handling varies by lender.
Danshin: Japan's Group Life Insurance Requirement
Nearly all Japanese banks require borrowers to enroll in danshin (团体信用生命保険, group credit life insurance) as a condition of the loan. Basic danshin pays off the remaining mortgage balance if the borrower dies or becomes severely disabled, with the base premium usually bundled into the interest rate at no extra visible cost. It does not by default cover inability to pay from illness short of severe disability — riders for cancer, heart attack or stroke are optional and add to the rate (MUFG, for example, adds 0.15% p.a. for its 50% three-major-disease plan). Borrowers who cannot pass danshin's medical underwriting have two common paths: Flat 35, where danshin is optional rather than mandatory, or "wide danshin" products for applicants with conditions such as hypertension or diabetes, usually at higher cost (MUFG adds 0.3% p.a. for its wide danshin).
Registration Tax and Foreign-Resident Options
Property registration tax (登録免許税) on a mortgage registration in Japan is set at a standard rate of 0.4% of the loan amount, reduced to 0.1% for qualifying residential properties (minimum 50 m² floor area, registered within one year of acquisition, with a municipal certificate) under a relief measure the National Tax Agency currently lists as running through March 31, 2027.
Non-Japanese residents can obtain mortgages in Japan, though options are narrower than for citizens or permanent residents. Some lenders — for example Suruga Bank's "Dream-J" home loan program — advertise products aimed specifically at foreign nationals, subject to stricter income, visa-status and guarantor requirements. Specific rates and eligibility criteria for these foreign-resident products vary by lender and were not independently verified here.
Real Japan mortgage rates after the Bank of Japan hikes (2026)
Japan's ultra-low mortgage era is fading. After a series of Bank of Japan policy-rate hikes through 2025–2026, variable-rate mortgages from major lenders (the dominant choice for most Japanese homebuyers) have risen to roughly 1.2%, up from the near-zero levels of the previous decade. Fixed-rate loans have moved by even more: the benchmark 35-year fixed product, "Flat 35," now commonly prices around 3.3%, meaning the gap between variable and long-fixed pricing has widened sharply as lenders price in further BOJ tightening over the life of a 35-year loan.
Worked example. On a ¥40,000,000 mortgage at a 1.2% variable rate over 35 years (420 monthly payments): monthly rate r = 0.012 / 12 = 0.001. With M = P·r·(1+r)n / ((1+r)n − 1): (1+r)420 ≈ 1.5202, so M = 40,000,000 × 0.001 × 1.5202 / (1.5202 − 1) ≈ 60,808 / 0.5202 ≈ ¥116,900 per month. At Flat 35's fixed 3.3% the same loan works out to roughly ¥168,700 per month — nearly 45% higher — which illustrates why the majority of Japanese borrowers still choose variable-rate loans despite the BOJ's tightening path, accepting the risk that their rate could rise further over the loan term.
Frequently Asked Questions
How is the mortgage payment calculated in Japan?
Lenders use the reducing-balance formula P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan, r the monthly rate and n the number of months. The fin·calc tool applies the same formula with Japan's typical rate.
What is the current home loan rate in Japan?
As a 2026 reference, typical rates are around 1.5% per year, linked to the Bank of Japan (BoJ) policy rate. Variable-rate mortgages ≈ 0.3–0.8% p.a., 35-year fixed ≈ 1.5–2%. BoJ ended negative rates in 2024, raised to 0.75% Dec 2025, 1.00% June 2026, then 1.25% in September 2026. Max tenure 35 years. Providers: MUFG, SMBC, Mizuho, Rakuten Bank, au Jibun Bank.
How much deposit do I need?
A larger down payment lowers both your rate and total interest, and reduces the lender's risk. Most lenders also add valuation, legal and registration costs on top of the deposit.
Can I reduce the total interest?
Yes — a bigger deposit, a shorter term, and extra or early repayments all cut total interest significantly. Use the prepayment option in the calculator to see your exact saving.
Why are Japanese mortgage rates rising now?
The Bank of Japan spent decades holding short-term rates at or below zero. Since ending negative rates and continuing to hike through 2025–2026, banks' variable mortgage rates — which are tied to the short-term prime lending rate — have followed upward, moving from near-zero to around 1.2%.
Should I choose a variable or fixed mortgage rate in Japan?
Variable-rate loans remain far cheaper on a monthly-payment basis (MUFG's 1.195% for October 2026 versus Flat 35's 3.460%–5.690% fixed range as of September 2026), which is why most Japanese borrowers choose variable. The trade-off is that variable payments can rise further if the BOJ continues tightening, while a fixed-rate loan locks in the higher rate for the full term.
What is Flat 35?
Flat 35 is Japan's standardized long-term fixed-rate mortgage product, backed by the Japan Housing Finance Agency, offering a rate fixed for up to 35 years. It costs more per month than a variable-rate loan but removes interest-rate risk entirely for the life of the loan.
Why did Japanese mortgage rates rise in September 2026?
Major banks raised their variable mortgage benchmark rates for September 2026 after the Bank of Japan's policy rate moves earlier in the year — MUFG's benchmark rose 0.25 points to 1.195%, while Flat 35's fixed rate reportedly hit its highest level since JHF began tracking it in January 2018, at 3.460%–5.690%.
What is the 125% rule and does it eliminate rate risk?
The 125% rule caps how much a variable-rate borrower's monthly payment can increase at each 5-year reset to 125% of the previous payment. It smooths cash-flow shock, but any interest owed above the capped payment is typically carried forward as unpaid interest rather than forgiven, so total repayment cost is not reduced — confirm the exact handling with your own lender.
Is group life insurance (danshin) mandatory for a Japanese mortgage?
Almost all Japanese bank mortgages require enrollment in basic danshin, which pays off the remaining balance on death or severe disability and is usually built into the interest rate at no extra visible premium. Flat 35 is a notable exception where danshin is optional, and applicants who cannot pass medical underwriting for standard danshin may be able to use "wide danshin" products for pre-existing conditions.
Why are Japanese mortgage rates rising now?
The Bank of Japan spent decades holding short-term rates at or below zero. Since ending negative rates and continuing to hike through 2025–2026, banks' variable mortgage rates — which are tied to the short-term prime lending rate — have followed upward, moving from near-zero to around 1.2%.
Should I choose a variable or fixed mortgage rate in Japan?
Variable-rate loans remain far cheaper on a monthly-payment basis (around 1.2% versus roughly 3.3% for 35-year fixed "Flat 35" loans), which is why most Japanese borrowers choose variable. The trade-off is that variable payments can rise further if the BOJ continues tightening, while a fixed-rate loan locks in the higher rate for the full term.
What is Flat 35?
Flat 35 is Japan's standardized long-term fixed-rate mortgage product, backed by the Japan Housing Finance Agency, offering a rate fixed for up to 35 years. It costs more per month than a variable-rate loan but removes interest-rate risk entirely for the life of the loan.
Related calculators
Sources
MUFG Bank, Home loan rates (variable 1.195% for October 2026 loans; accessed 15 October 2026). SMBC, Home loan rates (accessed 15 October 2026). Rakuten Bank, Home loan rate list (accessed 15 October 2026). Docomo SMTB Net Bank, Home loan rates (accessed 15 October 2026). MUFG Bank, Disease-coverage home loan (3-major-disease 50% plan, +0.15% p.a.; accessed 15 October 2026). MUFG Bank, Wide danshin (+0.3% p.a.; accessed 15 October 2026). (bank-by-bank variable-rate hikes and variable/fixed spread); Japan Housing Finance Agency (JHF), official Flat 35 rate table (September 2026 Flat 35 rate range); MUFG Bank, variable-rate benchmark revision notice; MUFG Bank FAQ, "5-year rule / 125% rule"; National Tax Agency (NTA), registration-tax reduced-rate notice; Suruga Bank, "Dream-J" foreign-resident home loan. See our methodology and editorial policy for how we source and update this data.