So my situation is I am looking for a mortgage loan for a newly constructed mansion that will be handed over next year (contract done).
I am a PR holder while my wife is HSP (PR applied) visa holder and we both are working. Currently my options are;
A) Go with Mizuho Pair loan with wife (as Mizuho is the only bank that can considers my wife's PR under application as sufficient to be eligible for full loan with downpayment). Interest rate will depend on existing rates as of next year possession but currently its .425%
B) Go with lowest interest rate bank such as Yokohama Bank of MUFG offering around .27% with myself as single borrower (no pair loan).
My biggest motivation to go for a pair loan is to get mortgage benefit both for me and wife as the property price is around JPY 77Mn while the individual loan limit for this mansion is capped at JPY 30Mn. A quick run of the numbers show that while there is higher interest cost with Mizuho, but additional tax credit for wife in pair loan we are net +ve in pair loan by around JPY 900,000 (this is without considering additional cost for creating mortgage for pair loan, probably stamp duty and creation of collateral etc are charged separately, not sure). In such a case it seems reasonable to go with pair loan but am i missing something? Also any body of you with pair loan or considered it but didn't go for it, any thoughts will be helpful?
by Future_Maintenance55
