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  • Writer's pictureAdam German

Interest rate deductions possible for households with children under proposed Flat 35 scheme

On November 10th, the Japan Housing Finance Agency announced the establishment of a new lending program, provisionally named Flat 35 Childcare Plus, which lowers interest rates based on the number of children in the household, as part of the interest rate reduction program for Flat 35 loans.

This initiative is in line with the comprehensive economic measures for achieving complete deflation escape, approved by the Japan Cabinet Office on November 2.

The new program is meant to help address the declining birthrate by creating an environment for the healthy growth of children.

Flat 35 is a stable, extended-term mortgage with a fixed interest rate, established through a collaboration between private financial institutions and the Japan Housing Finance Agency (JHF). In this arrangement, private financial institutions extend loans to borrowers, subsequently transferring the debt to the JHF. The JHF then repackages the debt into a mortgage-backed security, generating funds through this process.

The application of this program will commence from the funding received on the announcement date on Flat 35's website if the 2023 supplementary budget is approved.

The Flat 35 Childcare Plus targets households raising children under the age of 18 or couples where either spouse is under 40. It uniformly reduces interest rates based on the number of children.

The range of interest rate reduction has expanded from the previous maximum of -0.5% per annum to a new maximum of -1%. This Childcare Plus interest reduction proposal will be compatible with either current reductions schemes on offer such as Zero-Energy-Home (ZEH) acquisitions or other highly rated Long-Term Excellent Residence qualifications.


Flat 35 Childcare Plus promotional PDF

Flat 35 with Children Flyer JA
Download PDF • 2.49MB


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