Group life insurance for home loan

[SZQ]

Hi,

We eventually decided to buy a 15 year old mansion after unsuccessfully trying to find land to build a custom home in our desired area. For us, location is more important and we don't plan on having kids so we had to compromise. It probably makes more sense.

Anyway, we are going to borrow ~55 million with a 25 year term. The realtor has a relationship with the Bank of Yokohama and the pre-loan was approved at a floating rate of 0.3% which is great. We plan to check other lenders as well.

We need to get group life insurance. I think I'm right in saying that we don't have to go with the same lender right?
BoY rates range from 0.2% (cancer only) to 0.3% (8 diseases). Do these seem reasonable? Any recommendations for other lenders or where I can compare? Including the home loan rates, it will be 0.5%-0.6% in total. Still seems good I think...

Also, BOY refused to offer the Principal equal payment (元本均等返済) option. Is that even a thing here? Will it make a huge difference?

Thanks for any advice.

[Wales4rugbyWC23]

Hi,

We eventually decided to buy a 15 year old mansion after unsuccessfully trying to find land to build a custom home in our desired area. For us, location is more important and we don't plan on having kids so we had to compromise. It probably makes more sense.

Anyway, we are going to borrow ~55 million with a 25 year term. The realtor has a relationship with the Bank of Yokohama and the pre-loan was approved at a floating rate of 0.3% which is great. We plan to check other lenders as well.

We need to get group life insurance. I think I'm right in saying that we don't have to go with the same lender right?
BoY rates range from 0.2% (cancer only) to 0.3% (8 diseases). Do these seem reasonable? Any recommendations for other lenders or where I can compare? Including the home loan rates, it will be 0.5%-0.6% in total. Still seems good I think...

Also, BOY refused to offer the Principal equal payment (元本均等返済) option. Is that even a thing here? Will it make a huge difference?

Thanks for any advice.

0.3% is what I am paying with SMBC for the 8 diseases. However, they offered life insurance for free.

[SZQ]

0.3% is what I am paying with SMBC for the 8 diseases. However, they offered life insurance for free.

Wow! 0.3% total including insurance is great. I will take a look at them. Thanks!

[Tkydon]

If Aeon is big in your neighborhood, check out Aeon Bank for great mortgage rates and associated shopping discounts.
https://www.aeonbank.co.jp/housing_loan/

[Wales4rugbyWC23]

If Aeon is big in your neighborhood, check out Aeon Bank for great mortgage rates and associated
https://www.aeonbank.co.jp/housing_loan/shopping discounts.

I like that about Aeon Aeon is far too big and has destroyed far too many shotengais. I can't deny though they are a very convenient place to shop and given the downward trend in non-internet related shopping. They do seem to be very successful in bucking the trend.

[Tkydon]

Aeon is far too big and has destroyed far too many shotengais.

You can blame it all on the foreign companies who in the late '70 and early '80s (the height of the bubble) wanted to get the laws changed that protected the mom-and-pop retailers, in favor of allowing large supermarkets to move into their neighborhoods,take over their business, and put all the small retailers out of business.

They thought they could break the Japanese multi-tiered (what they termed 'inefficient') distribution system that kept multiple layers of distributors in business, but meant higher retail prices due to multiple layers of mark-ups, and by stream-lining multiple layers of distribution (putting those people out of work), they could achieve efficiency gains and take the profits for themselves...

This is the end result.

[SZQ]

Thanks guys.

Will check out Aeon bank. Friend also recommended AU Jibun Bank. Seems there are a lot better deals than the Bank of Yokohama, although I need to check the details.

If I go with BoY and the basic plan (only death is covered), I think it is included in 0.3%. Will I be able to add my own life insurance afterwards?
Meeting the realtor tomorrow and I think he wants me to get it done with BoY soon. I got all my tax certificates from the Ward office and Tax office today. If I proceed with the application, that's not an agreement right? I can still choose another lender?

The property sales agreement deadline is 28th July. So after that I think I will lose my deposit if I back out. But it's so time consuming applying to all the lenders. My Japanese level is only N4 so everything takes ages

[Kiro]

AU Jibun bank’s latest home loan which started this month, if you can get approved in time, is just incredible value with all the insurance included: 0.319% with がん50%＋4疾病50％＋全疾病保障
You should do the pre-check online asap.

The real estate agent pushed me towards Mizuho bank during the whole process (surely they get a commission) but I used a mortgage broker (free) service to apply to several online banks and ended up signing with SBI Net.
There was even a line in the contract stating that I will use Mizuho if I don’t get the approval from another bank.

As long as you get approved and sign with the bank at least 2 weeks (I think SBI told me 2 weeks) before payment day, you still have time.
It is worth it to apply to several, so you can compare.

[SZQ]

Thank you Kiro. Taking a day off work today so will apply to as many as I can!

[SZQ]

Good grief Japanese websites are bad!

I tried SBI Shinsei online application. First stage to submit my details went fine. Next stage to enter group credit life insurance takes me to an external site. I enter my name in English and Katakana and it tries to auto format but ends up putting garbage into the text box which then fails when I submit.

I tried AU Jibun bank. Enter my name in English and Katakana. When I try to submit, it says something is wrong with the name, does not say what exactly. I try capitalising my English name, submit again and another error saying email address and phone number already taken, presumably from the first failed attempt