November home loan rate trends are reviewed. The applicable rate for Flat 35 is expected to remain around 3.81% even after the reduction, while reports also cover trends in variable, 10-year fixed and fully fixed rates, as well as differences in applicable rules among banks.
Home loan rate trends have been reported since the start of November, with the applicable rate for Flat 35 expected to be around 3.81% even after the reduction. Variable rates are expected to continue rising in line with future trends in the Bank of Japan’s policy rate and market interest rates. Rates for 10-year fixed and fully fixed loans are affected by movements in market interest rates, and some reports warn that future developments require close attention.
The Bank of Japan raised its policy rate by around 0.25% at its September 2026 decision, bringing the current policy rate to 1.25%. A further increase is expected to be reflected from April 2027 onward, although the timing of the impact on actual payments varies by bank.
The long-term interest rate, measured by the 10-year Japanese government bond yield, was reported at 2.774% on 2 November 2026, and may rise or fall depending on movements in US and European interest rates. It has reached the 3% range in the past, but movements in US long-term interest rates are currently affecting the Japanese government bond market.
Banks differ in how they handle repayments when interest rates rise. At banks that adopt the 5-year rule, repayments may remain unchanged even when interest rates rise, while at banks that do not adopt the 5-year rule, the impact on repayments appears sooner. This difference requires attention.