Flat35 Loan Limit Is Going Up in Japan

If you’re planning to buy a home in Japan, there’s an important update coming to Flat35 (フラット35) that’s worth knowing about.

From April 2026, the maximum amount you can borrow through Flat35 will increase from ¥80 million to ¥120 million. This will be the first increase in the loan cap in roughly 20 years.

The change comes as home prices continue to rise, especially in major cities like Tokyo, where even standard family homes and new condos often exceed the old lending limit. For many buyers, this meant needing to combine multiple loans or rely more heavily on variable-rate mortgages.

With the higher cap, Flat35 becomes a more practical option again for higher-priced properties. Buyers can borrow more while keeping the main benefit of Flat35: a fixed interest rate for the entire loan term, offering long-term stability and predictable monthly payments.

There are a few other updates coming at the same time. Minimum floor size requirements will be relaxed, making it easier for smaller homes to qualify. Refinancing rules are also being improved, allowing more borrowers — especially families — to switch into Flat35 under better conditions.

For anyone looking at buying or refinancing from 2026 onward, these changes could make financing simpler and reduce exposure to future interest rate increases.