Why did Japan mortgage rates rise in February?

Lenders lifted 10-year fixed mortgage rates because long-term funding costs increased. The 10-year JGB yield is near a 27-year high, and banks pass that higher cost to borrowers. Variable rates were left unchanged for February, but may adjust by spring if short‑term benchmarks move.

How much did fixed mortgage rates increase?

The Big 5 raised 10-year fixed mortgage rates by about 0.07–0.33 percentage points, setting typical offers near 2.75–3.175%. The exact rate you receive will depend on your credit, loan‑to‑value, and the bank’s campaign pricing when you apply.

Are variable mortgage rates in Japan also rising now?

Not for February. Major banks kept variable mortgage rates unchanged this month. That said, if banks revise short‑term prime rates by spring, floating loan repayments could increase. Borrowers on variable plans should review budgets and consider partial fixes to manage potential payment changes.

How do higher rates affect monthly payments?

Payments rise as rates increase. For example, per ¥10,000,000 over 35 years, monthly payments are about ¥37,373 at 2.80%, ¥38,476 at 3.00%, and ¥39,460 at 3.175%. Scaling that to a ¥35,000,000 loan adds around ¥3,861 to ¥7,305 per month, depending on the new rate.

What should homebuyers in Japan do now?

Get preapproved, compare quotes across several banks on the same day, and ask about rate locks. Consider a mix of fixed and variable if you can manage reset risk. Run stress tests at slightly higher rates and keep cash buffers for taxes, insurance, and maintenance.

Global Market Insights

January 31: Japan Mortgage Rates Rise as Big 5 Lift Fixed Loans

ByHuzaifa Zahoor January 31, 2026January 31, 2026

Japan mortgage rates moved higher for February as the five mega banks lifted 10-year fixed mortgage rates by 0.07–0.33 percentage points to 2.75–3.175%. The move tracks the 10-year JGB yield, which is near a 27-year high. Variable rates stay unchanged for February, but banks could revise short-term prime rates by spring. We explain what changed, why it happened, and how borrowers and property investors in Japan can plan their next steps.