Flat 35 typical mortgage rate for loan terms over 21 years hits 2 percent

On January 5^th, the Japan Housing Finance Agency announced interest rates to be applied in January 2026 for Flat 35 fixed-rate mortgages offered through participating financial institutions.

The Japan Housing Finance Agency is a government-affiliated incorporated administrative agency that supports long-term housing finance. Its Flat 35 program offers fixed-rate home loans through private lenders, with interest rates set for the full repayment period.

Photo by Anastassia Anufrieva on Unsplash

For loans with a loan-to-value ratio of 90% or less and a repayment period of 21 years or longer, interest rates range from 2.080% to 4.740%, representing increases of 0.110 percentage points and 0.230 percentage points, respectively, from the previous month.

The most common rate offered by lenders rose by 0.110 percentage points to 2.080%, marking the third consecutive monthly increase. This is the first time the most common rate has reached the 2% range since a system revision in October 2017.

For loans with a loan-to-value ratio of 90% or less and a repayment period of 20 years or shorter, interest rates range from 1.710% to 4.370%, up 0.130 percentage points and 0.250 percentage points, respectively, from the previous month.

The most common rate in the 20-year-or-less time frame also climbed for the third straight month, rising 0.130 percentage points to 1.710%.

Source:

R.E. Port News (Japanese only)