The Bank of Japan announced its decision to raise its policy rate to around 1.25%. Variable mortgage rates are expected to rise further, while fixed-for-the-entire-term rates remain elevated, widening the gap between variable and fixed rates to a record high.
The Bank of Japan decided at its monetary policy meeting on the 18th to raise its policy rate to around 1.25%. This has prompted views that upward pressure on market interest rates will strengthen again.
Variable mortgage rates are expected to continue rising, while fixed-for-the-entire-term rates are also expected to remain elevated.
The gap between variable and fixed rates continues to widen, with some pointing out that it has reached a level close to a record high.
As financial conditions change, the importance of mortgage repayment planning and risk management is being reaffirmed.