Yen Loan Calculator For Buying A House In Japan

Japanese Yen Loan Calculator

The rates shown and any rates you enter into this calculator are for estimation purposes only. Mortgage rates in Japan change monthly and vary by lender, property type, loan-to-value ratio, and your residency and income profile. Housing Japan does not guarantee any specific rate.

Use the calculator above to estimate your monthly mortgage payment for a home purchase in Japan. Enter the loan amount in yen, the repayment period in years, and the interest rate you expect to pay. The tool will show your estimated monthly repayment right away.

If you are not sure what rate to enter, the sections below explain how home loans work in Japan and what rates borrowers are seeing in 2026.

Key Facts: Japan Mortgages in 2026

• Bank of Japan policy rate: 1.0%, raised from 0.75% on 16 June 2026 and held at the meeting on 30 and 31 July
• Flat 35 fixed rate (August 2026): most common rate of 3.290% for loans of 21 to 35 years at a loan-to-value ratio of 90% or less, published by the Japan Housing Finance Agency
• Variable rates in mid-2026: many products still priced at around 1.0% to 2.0%, depending on residency, lender, and borrower profile
• Share of borrowers choosing variable rates: 75.0%, down from 79.0% in the previous survey, per the Japan Housing Finance Agency
• Flat 35 eligibility: Japanese nationals, permanent residents, and special permanent residents only
• Maximum standard loan term: 35 years (50 years under the Flat 50 programme for qualifying homes)

How Does a Japanese Home Loan Work?

A home loan in Japan works much like a mortgage in other countries. You borrow a lump sum from a bank, and you repay it in monthly instalments over a set number of years. The most common term is 35 years, though you can choose a shorter period.

Banks in Japan offer two main types of rates. A variable rate changes over time based on the short-term prime rate set by major banks. A fixed rate stays the same for a set period, or in the case of Flat 35, for the full life of the loan. Most buyers in Japan choose a variable rate because the starting rate is lower, though this means the monthly payment can rise if interest rates go up.

What Interest Rates Should I Expect in Japan in 2026?

Mortgage rates in Japan depend on who is borrowing, which bank is lending, and what kind of property is being financed. There is no single rate that applies to every buyer. The best way to think about it is as a range.

Variable rates in mid-2026 generally fall in the range of around 1.0% to 2.0% for most buyers. The exact rate depends on your residency status, the bank’s assessment of your income, the size of your down payment, and the property itself. Japanese citizens and permanent residents borrowing from major banks with strong income profiles may see lower rates; buyers without permanent residency or those financing investment property typically see rates in the upper part of this range or above. Banks are still passing on the June increase: Mitsubishi UFJ Bank raised its short-term prime rate on 3 August 2026 and revises its variable base rate from September, and other lenders are expected to follow through the autumn.

Fixed rates are higher but offer stability. The Japan Housing Finance Agency published a most common Flat 35 rate of 3.290% for August 2026, covering loans of 21 to 35 years at a loan-to-value ratio of 90% or less. That is the highest level since the programme was restructured in October 2017, up from 3.140% in July. Shorter Flat 20 terms of 20 years or less were priced at 2.970% over the same period.

These rates follow the Bank of Japan’s decision on 16 June 2026 to raise its policy rate from 0.75% to 1.0%, the highest level since 1995. The Bank held the rate steady at its meeting on 30 and 31 July and has said it will keep raising rates as economic conditions allow, so the figures above may change. Please speak with us for a current quote before making a purchase decision.

Fixed Rate or Variable Rate: Which Should You Choose?

The right choice depends on how long you plan to hold the loan and how much payment risk you can handle. A variable rate gives you a lower starting payment, which means you pay less each month today. The trade-off is that your payment can rise if the Bank of Japan keeps raising rates over the years ahead.

A fixed rate costs more at the start, but your monthly payment will not change. This makes it easier to plan your household budget over the long term. Flat 35, the government-backed fixed-rate product, is popular with buyers who want this kind of stability. It is available through more than 300 banks and credit unions across Japan, though eligibility is restricted by residency status, which the section below explains.

Here is a simple comparison of the two main options as of early 2026:

Flat rates shown are for a loan-to-value ratio of 90% or less, with the Japan Housing Finance Agency’s group credit life insurance included.

Can Foreign Residents Get a Mortgage in Japan?

Yes, foreign residents can get a home loan in Japan, though the process is harder without permanent residency. Most Japanese banks prefer borrowers who hold permanent residency (eijuken), because lenders view this as proof of long-term financial stability. Buyers without permanent residency can still get a loan in some cases, but they may need a larger down payment, a higher income, or a Japanese guarantor.

Foreign buyers with permanent residency are generally treated much like Japanese citizens by lenders, which means access to better rates and more bank choices. They can also apply for Flat 35, which the Japan Housing Finance Agency limits to Japanese nationals, permanent residents, and special permanent residents. Buyers without permanent residency should expect rates toward the upper end of the range, or higher depending on their profile, and will need a private lender rather than Flat 35. To learn more, see our guide on how foreign residents can get a real estate loan in Japan.

How Much Deposit Do You Need to Buy a Home in Japan?

Most banks in Japan ask for a down payment of 10% to 20% of the property price for well-qualified borrowers. Buyers without permanent residency may need to put down more, depending on the lender. Some banks also do offer 0% down payment loans but these can come with higher interest rates and higher monthly costs. On top of the down payment, buyers should budget another 6% to 8% of the purchase price for fees and taxes. These include the property acquisition tax, registration tax, stamp duty, loan origination fees, and the agent’s commission.

For a property listed at ¥100,000,000, this means you should expect to pay around ¥6 million to ¥8 million in closing costs in addition to your deposit.

Worked Example: What Does a Tokyo Home Loan Cost Per Month?

To give you a feel for the numbers, here are three examples based on a 35-year loan at a 1.5% variable rate, which sits in the middle of the typical range in 2026:

• ¥50,000,000 loan: about ¥153,000 per month
• ¥100,000,000 loan: about ¥306,000 per month
• ¥200,000,000 loan: about ¥612,000 per month

For comparison, a ¥100,000,000 loan at the August 2026 Flat 35 rate of 3.290% over 35 years would cost about ¥401,000 per month. This means a fixed-rate borrower pays roughly ¥95,000 more each month in exchange for protection against future rate rises. That gap was closer to ¥31,000 in January, which shows how far long-term fixed pricing has moved this year. These figures are illustrations only. You can test any combination of loan size, term, and rate using the calculator at the top of this page.

Common Questions About Japan Home Loans

What is Flat 35? Flat 35 is a fixed-rate home loan programme run by the Japan Housing Finance Agency (JHF) in partnership with private banks. The rate stays the same for the full loan term of up to 35 years, which makes monthly payments easy to plan. The most common rate in August 2026 was 3.290% for terms of 21 to 35 years. Applicants must be Japanese nationals, permanent residents, or special permanent residents.

Are mortgage rates higher for foreigners in Japan? Not because of nationality itself. Rates depend mainly on residency status. Permanent residents are generally offered the same rates as Japanese citizens, while buyers without permanent residency typically pay a premium and may face larger down payment requirements.

Can I pay off my home loan early in Japan? Yes. Most Japanese banks and credit unions allow early repayments with no penalty, either online or in person at a branch.

How long does the mortgage approval process take in Japan? For most buyers, bank approval takes between two and four weeks. Foreign buyers without permanent residency may face a longer review.

Are mortgage payments tax deductible in Japan? Yes. The housing loan tax credit (jutaku loan kojo) deducts 0.7% of your year-end loan balance from income tax for up to 13 years. The 2026 tax reform, which passed on 31 March 2026, extended the credit to homes occupied by 31 December 2030 and relaxed the minimum floor area to 40 square metres for most buyers, bringing more compact Tokyo apartments into scope. Those with total income above ¥10 million still need 50 square metres. Talk to a tax professional for details on your own situation.

If the Bank of Japan raises rates, when does my payment change? Most banks review variable base rates twice a year, in April and October, then apply the result a few months later. Many loans also carry a five-year rule, which holds the monthly payment steady for five years, and a 125% rule, which caps any increase at 125% of the previous payment. Interest still accrues in the meantime, so more of each payment goes to interest and less to principal.

Plan Your Home Purchase in Japan

Understanding your monthly payment is the first step in buying a home in Japan. For help choosing the right loan and finding a property that fits your budget, please contact our team at Housing Japan. We work with buyers from Japan and overseas to guide them through every stage of the purchase. You can also browse our guide to buying a home in Tokyo or search current listings.

Source:
Bank of Japan – Change in the Guideline for Money Market Operations, 16 June 2026
Japan Housing Finance Agency – Flat 35 current rates
Japan Housing Finance Agency – Survey of Housing Loan Users
Japan Housing Finance Agency – Flat 35 FAQ on foreign nationals
MLIT – Housing Loan Tax Credit