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Japan's 50-Year Home Loans Gain Traction With Younger Buyers

Rising property prices are pushing first-time buyers toward longer maturities to reduce monthly payments.

Overview

  • New reporting shows a noticeable expansion in ultra‑long mortgages among people in their 20s and 30s.
  • Surveyed selections indicate terms longer than 35 years account for about 70% of borrowers in their 20s and 49% in their 30s.
  • PayPay Bank introduced loans up to 50 years in July, with many borrowers purchasing relatively high‑priced properties.
  • Internet and regional banks are rolling out similar products, often requiring borrowers to finish repayment by around age 80.
  • Experts caution that longer terms raise total interest costs, can leave debt past retirement, and extend exposure to interest‑rate shifts that affect both variable and fixed loans.