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5 Major Japan Banks Raise Fixed Rates for Housing Loans

REUTERS/Toru Hanai/File Photo
A man walks past signboards of Resona Bank (green), MUFG Bank (red) and Mizuho Bank (blue) in Tokyo.

The Yomiuri Shimbun

17:17 JST, February 1, 2026

The nation’s five major banks have increased base rate for a 10-year fixed-rate mortgage, setting them at 4.85%-5.67% per annum starting this month.

The decision on the hikes is linked to the recent increase in benchmark interest rates of long-term government bonds. The rates of MUFG Bank, Sumitomo Mitsui Banking Corp., Mizuho Bank and Sumitomo Mitsui Trust Bank are set at the highest since their establishment.

The actual applied interest rate is determined by a margin of the preferential rates, which depends on the borrower’s credit ratings and normally set lower than base rates. All five banks also raised their most preferential interest rate, setting it at 2.750%-3.175%. The margins of increase in base rates and most preferential rates ranged from 0.07% to 0.33%.

The new rates are subject to loans filed this month. Loans that have already been taken out will not be affected.

The five banks did not change variable rate home loans, which account for about 80% of housing loans that have been taken out.