The Bank of Japan kept its policy rate at around 1.25% at its meeting on 30 October 2026. This means that two rate hikes have already been implemented in 2026, making how housing loan repayments are reviewed and the points to note regarding unpaid interest a focus.
The Bank of Japan decided to keep its policy rate at around 1.25% at its meeting on 30 October 2026. Following rate hikes in June and September so far in 2026, attention is focused on the impact of interest rate movements on housing loans.
According to the Japan Housing Finance Agency’s “Survey on Housing Loan Users (January 2026 survey),” variable-rate loans accounted for 75.0%, fixed-period selection loans for 14.9%, and fully fixed-rate loans for 10.1% of housing loan types. Many users also expect interest rates to rise over the next year.
For borrowers with variable-rate loans, the timing and method used to review the applicable interest rate under their contract have a major bearing on their actual repayments, more so than movements in the policy rate. The article explains the mechanisms and points to note regarding interest rate reviews.
Readers considering their future household finances and repayment plans need to check the timing and conditions for reviews of applicable interest rates at each financial institution. Based on materials from external distribution sources, the article explains the specific mechanisms for such reviews.