Major banks to raise mortgage rates

The Yomiuri Shimbun

17:38 JST, December 30, 2022

Mizuho Bank, Ltd. and Sumitomo Mitsui Banking Corp. announced Friday that they will raise their respective base rates for 10-year fixed-interest mortgages starting in January.

Mizuho Bank will boost its rate to 3.5%, up 0.3% from December, while Sumitomo Mitsui Banking Corp. will lift its rate to 3.79%, up 0.26%. Both banks’ rate increases are the largest month-on-month hikes in 14 years and 7 months, since June 2008.

After the hikes, Mizuho Bank’s interest rate will be at its highest level since November 2011, and SMBC’s will be at its highest level since October 2013. The banks decided to raise rates in light of the sharp rise in long-term interest rates. Both banks left their variable interest rates, which are linked to short-term interest rates, unchanged.