Following the Bank of Japan’s rate hike, variable home loan rates have remained in the 0% range, and a turning point is emerging in the home loan strategies of internet banks. We asked Maruyama Noriaki (円山 法昭), president of ドコモSMTBネット銀行, about future trends.
Following the Bank of Japan’s rate hike in June, home loan interest rates are expected to rise, but they remain low for now. As a result of the unprecedented monetary easing pursued to date, variable rates in the 0% range have been the norm, and the extent to which interest rates will normalize is now a key focus.
Regarding the fact that 80% of home loan borrowers currently choose variable rates, President Maruyama said, “The larger the interest-rate gap, the more advantageous variable rates appear, but as rates normalize, the proportion choosing fixed rates will increase.” He also indicated that the Bank of Japan’s monetary policy has influenced the prevalence of variable rates.
The home loan strategies of internet banks are expected to reach a turning point depending on whether the low-interest-rate environment persists and how far interest-rate normalization progresses. Attention is focused on future market trends and product design.
The article presents the view that the Bank of Japan’s rate hikes will bring back “a world with interest rates” and discusses how customers may choose between fixed and variable rates as the gap between them narrows.