MUFG Bank officially announced that it would raise its short-term prime rate by 0.25 percentage points and review the benchmark rate for variable-rate home loans. The new rate is expected to apply from 2 November 2026, with the benchmark rate revision scheduled to begin on 1 December.
MUFG Bank announced that it would raise its short-term prime rate from the current 2.375% to 2.625%. The new rate will take effect on 2 November 2026, and the benchmark rate applied to variable-rate home loans is also scheduled to be reviewed from 1 December of the same year.
The increase was explained as part of a broader response by private financial institutions to the Bank of Japan raising its policy rate to 1.25%, and is expected to have potential knock-on effects on other financial institutions.
For existing borrowers with variable-rate home loans and people considering new purchases, the revision may affect the post-revision interest-rate level and calculations of the amount they can borrow. Accurately monitoring interest-rate trends is being regarded as important.
The article is based on MUFG Bank's official announcement and sets out the revision schedule and an overview of its potential impact. It includes a link to the official release as its source.
For the real estate market and investors, it has been noted that the practical effects of the rate revision need to be assessed over the medium to long term, with close attention paid to developments among financial institutions.