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  • Writer's pictureAdam German

Japan reverse mortgage originations drop in 2023

On May 24th, The Japan Housing Finance Agency released its statistics for the reverse mortgage-type home loan Reverse 60, covering the first quarter of 2024 and calendar year 2023. 

The Japan Housing Finance Agency is the same organization responsible for the well known Flat 35 home loan. The reverse mortgage product they offer is called Reverse 60. 

In calendar 2023, the number of mortgage origination applications dropped to 1,626, marking an 8.5% decrease from calendar 2022.  


The number of approved units fell by 10.5% to 1,382, while the total amount borrowed declined by 8.5% to ¥21.8 billion. 


Couple going over Japan reverse mortgage loan details

For the period from January to March 2024, there were 359 applications, down 10.9% from the same period in 2023.  


The number of properties financed decreased by 17.4% to 352, and the total amount borrowed fell by 8.6% to ¥6.04 billion.  


The average age of applicants was 69.5 years, with an average annual income of ¥3.59 million.  


Pension recipients made up the largest group at 53.2%, followed by company employees at 25.1%, and company executives at 6.7%. 


The primary uses of the funds included custom-built homes (32.6%), single-family home renovations (22.3%), new condominiums (15.9%), refinancing (15.6%), and existing condominiums (8.4%).  


The average required amount was ¥30.09 million, with an average loan amount of ¥16.43 million and a monthly payment of ¥38,000. The non-recourse type accounted for 99.2% of the loans. 


At the end of March 2024, the cumulative number of covered cases for Reverse 60 is nearing 8,000 loans, with the total borrowed amount reaching ¥124.8 billion. 


Further Reading: 

Reverse 60 FY 2023 JHA Press Release (Japanese only) 

JHA Reverse 60 FY 2023 JA
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Source: 

R.E. Port News (Japanese only) 

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