ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
About 70% of new homebuyers in Japan opt for variable-rate mortgages, exposing themselves to rising interest rates.
Datawatch

Japan mortgage balances soar despite slowing property values

Total outstanding loans top $1.5tn but BOJ rate risk looms

DAISUKE HORI, Nikkei staff writer | Japan

TOKYO -- The outstanding balance of mortgage loans continues to swell in Japan, topping 220 trillion yen ($1.5 trillion) at the end of June, but the asset value of houses remains stagnant in sharp contrast with the U.S., where the value of homes has climbed faster than mortgage liabilities.

In Japan, more than 70% of borrowers choose variable-rate mortgages. A rise of 0.1 percentage point in loan rates will likely boost the cumulative interest burden by 110 billion yen, according to Tokyo-based mortgage data provider MFS.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more