November 17, 2010

Japanese customers drawn to adjustable rate home loans as rates remain low

" Some financial institutions are offering products with annual interest rates starting at 1 percent or less...According to a survey by the Japan Housing Finance Agency, about 50 percent of borrowers taking out new mortgages are opting for adjustable-rate home loans, a significant increase from 9.4 percent in January 2007. Three major domestic banks--Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corp. and Mizuho Bank--say 80 percent to 90 percent of their customers have been choosing adjustable-rate loans since the beginning of this year..."As long as interest rates are expected to remain low, adjustable types of home loans will continue to be popular," one bank official said. "

Source:Majority of mortgages now adjustable-rate
Ryosuke Yamauchi
Yomiuri Shimbun
Aug. 11, 2010

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