Just want to say thanks to all posters for their reply and advice beforehand!
Short Ver:
I dont have PR so wife is taking out a 3800万 loan. Would like advice as to what’s a good bank/ low interest rate for a loan this big.
Detailed Ver:
I made a previous post but me and the wife have found what looks like a decent place being built that will complete in 2 years time. Its a 5min walk from Omiya station.
https://nskre.jp/oomiya/ specifically.
We decided on a room and after talking, the agent basically said our best bet is to have 25,000,000yen ready for downpayment in 2 years and get a 38,000,000 bank loan to finance the rest. Which we applied for and will get the results in a week. Nothing signed yet so we can back out but….we DO like the room, which Im afraid will cloud our judgement…
As I dont have PR (Im just a few months off from 10years but too late for bank load deadline) so the loan will be entirely under wifes name. The ” expense breakdown” spreadsheet given to us has 0.475% interest written down, which I thought was great…until I double checked the monthly repayment…which actually came out to 8.5%?
The agent seemed really keen on pushing a 2LDK on us despite my saying an extra room for our eventual 2nd kid is better. Instead of suggesting a 3LDK (maybe because she thinks we can barely afford our chosen 2LDK?), she kept saying lots of people just move/sell when lifestyles change, kids dont live with their parents that long anymore, etc. Basically any reason so not go for the 3LDK, which I have the extra money for but didnt mention. She probably picked up on my wife being the easily-swayed type…which is why Im hesistent to believe she’s trying all that hard to help us save money over making this sale…
I’ve been scouring google for all the info I can get for awhile now and still only have a basic grasp of whats considered a low interest rate or loan type for these kinds of purchases. So, I was hoping to get some advice from people who have done this dance before.
9 comments
I had 0% for the first 10 years and refinanced at 1.7% Original loan was 27 mil and payments were 110,000 a month before the refinance, 75,000 after.
“I don’t have PR (I’m just a few months off 10 years….”
Just so you’re aware, after 3 years of marriage to a Japanese national (in Japan or anywhere in the world) + 1 year consistent residency in Japan + a 3/5 year visa THEN you’re eligible for PR…
When I got my 3LDK detached house, 3 years ago, ARUHI flat 35 was the lowest. It’s a fixed interest rate, if I remember correctly, it’s 0.9% for 10 years, then go up to 1.1% after that. Monthly payment is under 60,000.
0.475% looks like a variable rate ? just my own humble opinion, but letting BOJ and its banking minions control how much you payback interest for 35 years is not my idea of fun, but then again, no one can tell the future.
Also you company might have preferential rate if you work for a Japanese company .
That was the case for me .
Have you check with your HR ?
Maybe cross-post to r/japanfinance ?
I’d be interested in a nice summary too
My wife and I were offered 0.475% as a fixed rate loan about two years ago. I think the variable rate started a little lower (but obviously could’ve risen over time).
> As I dont have PR (Im just a few months off from 10years but too late for bank load deadline) so the loan will be entirely under wifes name. The ” expense breakdown” spreadsheet given to us has 0.475% interest written down, which I thought was great…until I double checked the monthly repayment…which actually came out to 8.5%?
Are the interest payments front-loaded? So that you pay off the interest earlier and then tackle the principal later on? That might explain why the initial monthly payments seemed to have a higher interest, perhaps.
The flat 35 is the best. And since it’s government funded the bank doesn’t matter.
Oh wait no PR, can your wife qualify without you?
>As I dont have PR (Im just a few months off from 10years but too late
for bank load deadline) so the loan will be entirely under wifes name.
The ” expense breakdown” spreadsheet given to us has 0.475% interest
written down, which I thought was great…until I double checked the
monthly repayment…which actually came out to 8.5%?
You guys need to actually sit down and research how loans work before doing this. 0.475 is definitely a variable rate and will go up and down depending on market movements. Cheapest variable available now is au jibun ginko at around 0.289%. Flat 35 has more lenient terms in terms of eligibility but the interest rate is higher at around 1.44%. Which to go for depends on how much flexibility you have in terms of dealing with ups and downs in interest which hasn’t really changed in the last 30 years in Japan. The lowest variable rates mean a lower monthly cost but the upfront fees are usually much higher (to the tune of 2.2% of the mortgage value). There are no simple truths here and everyone has a different financial situation so you need to do some research to learn what fits your situation.
Other then this being an ad for the new building, go to any bank during their home loan counseling days. They should have a few days a month. There u can learn about the other fees and life insurance for the loan. Also check with your wife’s tax status for what deductions will be allowed. For rates internet banks are usually lower but u get what u pay for so usually lower customer care.
PS. Can’t believe the prices that they are asking for even though it is next to the station.
But then again the agent is right that U will have an easier time selling if u do plan to move to a bigger place.