Housing loans with repayment periods of up to 50 years, far longer than the standard 35-year term for long-term mortgages, are gaining popularity in Japan, particularly among people in their 20s.
With housing prices continuing to soar, as illustrated by the average price of newly built condominiums in central Tokyo’s densely populated 23 wards now exceeding ¥100 million, a growing number of homebuyers appear to be opting for superlong-term loans in an effort to keep their monthly payments at manageable levels.
Housing loans with repayment periods of up to 50 years are being offered mainly by regional and online banks. By lowering the monthly repayment burden, these new long-term loans allow borrowers to purchase properties that would be unaffordable under a 35-year mortgage.