Japan's five major banks announce October mortgage rates: three raise variable rates, all raise fixed rates

時事通信··JP·Read original
3▲5 ▼0Impact / 5
Summary · why it matters

Five major banks including MUFG Bank announced on the 30th the mortgage rates to apply in October. For the variable-rate preferential rates used by most borrowers, Resona Bank, Mizuho Bank, and Sumitomo Mitsui Trust Bank raised their rates by 0.25 to 0.62 percentage points from the previous month, bringing Resona to 1.25%, Mizuho to 1.275%, and Sumitomo Mitsui Trust to 1.7%. MUFG and Sumitomo Mitsui Banking Corporation left their rates unchanged, but all banks raised their fixed rates. With this revision, variable rates now exceed 1% at all banks, reflecting the rise in the benchmark short-term prime rate following the Bank of Japan's rate hike in June. The Bank of Japan decided on an additional rate hike at its September meeting, and this is expected to be reflected in variable rates going forward. For the 10-year fixed preferential rate, all five banks raised their rates by 0.12 to 0.77 percentage points from the previous month in light of rising long-term interest rates, with MUFG at 3.75%, Sumitomo Mitsui at 4%, Sumitomo Mitsui Trust at 4.965%, Mizuho at 3.6%, and Resona at 4.205%.

Impact on assets 7

Financials▲
Mitsubishi UFJ Financial Group, Inc.
8306
▲ PositiveMonetaryrelevance

MUFG left variable rates unchanged but raised fixed rates (10-year at 3.75%) in light of rising long-term interest rates following BOJ rate hikes, supporting margins.

Resona Holdings, Inc.
8308
▲ PositiveMonetaryrelevance

Resona raised its October variable mortgage rate to 1.25% and fixed rates, reflecting the BOJ's June rate hike and rising long-term rates, supporting lending margins.

Sumitomo Mitsui Trust Group, Inc.
8309
▲ PositiveMonetaryrelevance

Sumitomo Mitsui Trust raised its October variable mortgage rate to 1.7% and fixed rates, reflecting the BOJ's June rate hike and rising long-term rates, which supports bank lending margins.

Sumitomo Mitsui Financial Group, Inc.
8316
▲ PositiveMonetaryrelevance

Sumitomo Mitsui Banking left variable rates unchanged but raised fixed rates (10-year at 4%) in light of rising long-term interest rates following BOJ rate hikes, supporting margins.

Mizuho Financial Group, Inc.
8411
▲ PositiveMonetaryrelevance

Mizuho raised its October variable mortgage rate to 1.275% and fixed rates, reflecting the BOJ's June rate hike and rising long-term rates, supporting lending margins.

Others▲
Others▲