Jūtaku rōn (住宅ローン) Calculator Japan

Market overview

Japanese home loans (jūtaku rōn) are notable for the world's lowest mortgage rates — often under 1% for variable-rate loans tied to the short-term prime rate. Major lenders include Mizuho Bank, MUFG Bank, Sumitomo Mitsui Banking Corporation (SMBC), and the digital-first Sony Bank and Rakuten Bank. Following the Bank of Japan's gradual normalization from 2024-2026, variable rates have crept from 0.4% toward 0.7%, while 10-year fixed sits near 1.5%.

Why 1.5% is the typical rate

1.5% is the typical 10-year fixed rate (10-nen kotei) in 2026 for prime borrowers at 80% LTV. Variable rates (hendō kinri) run 0.5-0.9%, and Flat 35 (the JHF-backed 35-year fixed) runs 1.6-2.1%.

Tax & regulatory notes

The 住宅ローン控除 (jūtaku rōn kōjo, mortgage tax deduction) lets you deduct 0.7% of your outstanding loan balance from your income tax for up to 13 years (up to ¥4,000,000 max deduction). Stamp tax (inshi-zei) is graduated by loan size. Registration tax (tōrokumenkyo-zei) on the mortgage is 0.4% of loan amount. Most Japanese mortgages are recourse — the borrower remains liable even after foreclosure.