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.
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