Japan’s Ultra-Low Mortgages to See First Increase in 17 Years
- MUFG plans to raise key rate for home loans after BOJ hike
- Some mortgage rates in Japan are advertised as low as 0.27%
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The Bank of Japan’s second interest-rate hike in nearly two decades is set to impact millions of personal mortgages, raising borrowing costs for homebuyers for the first time in a generation.
Mitsubishi UFJ Financial Group Inc., Japan’s largest bank, said it plans to increase the short-term prime rate for the first time in 17 years in September following the central bank’s move on Wednesday. Other lenders are expected to follow. About 75% of personal mortgages in Japan are floating-rate loans tied to the short-term prime rate set individually by banks.