Flat 35 Interest Rate Reaches 3.21% in June 2026

The interest rate for Japan's Flat 35 fixed-rate mortgage rose sharply in June 2026. According to the Japan Housing Finance Agency, the most common interest rate offered by lenders for Flat 35 loans with a repayment period of 21–35 years and a loan-to-value ratio of 90% or less increased to 3.21%, up from 2.71% in May 2026.

This marks one of the largest monthly increases in recent years, with rates rising by 0.50 percentage points in a single month.

Flat 35 is Japan's long-term fixed-rate mortgage program, allowing borrowers to lock in their interest rate for the entire loan term. While the recent increase means higher borrowing costs for new applicants, existing borrowers with fixed-rate contracts are not affected.

Rising interest rates are an important reminder that financing conditions can change quickly. For buyers who have been considering a home purchase, now may be a good time to review available opportunities and assess current mortgage options.

At First Step, we assist both local and international clients with property searches, financing guidance, and every step of the purchasing process in Japan.