Japan Flat 35 home loans expand fifty percent in July to September quarter

The Japan Housing Finance Agency (JHF) announced on October 28 that applications for Flat 35 home loans rose sharply in the July–September quarter of 2025, reflecting continued strong demand for long-term, fixed-rate mortgages amid rising variable-rate uncertainty.

According to the agency, total Flat 35 applications reached 14,223 units, up 50.7% from the same period last year.

Completed loans climbed 27.7% to 8,463 units, while the total loan amount grew 35.8% to 277.6 billion yen.

Photo by Daniel Chen on Unsplash

For the purchase-type Flat 35, applications increased 38.0% to 11,641 units, with completed loans rising 18.5% to 7,103 units and total loan value up 24.9% to 229.8 billion yen.

The guarantee-type Flat 35 saw particularly strong expansion, with applications surging 156.4% to 2,582 units, completed loans doubling 113.8% to 1,360 units, and total loan value soaring 134.6% to 47.8 billion yen.

What Is Flat 35?

Flat 35 is Japan’s government-backed long-term, fixed-rate mortgage program, jointly operated by the Japan Housing Finance Agency and private financial institutions. The program aims to promote stable homeownership by offering borrowers fixed monthly payments for up to 35 years.

Under the purchase-type scheme, private lenders originate the loans and then sell them to the JHF, which provides funding and assumes the risk - allowing banks to offer competitive fixed interest rates.

In contrast, the guarantee-type model enables lenders to retain the loans while the JHF provides a repayment guarantee.

Borrowers must meet housing quality and properties that qualify must meet energy-efficiency standards set by the JHF.

The Flat 35 program has become a key pillar of Japan’s housing finance system, providing a stable alternative to variable-rate mortgages and supporting long-term financial planning for homebuyers.

Source:

R.E. Port News (Japanese only)