What would a good interest rate for a home loan be?

[Tsumitate Wrestler]

I have PR and my wife is Japanese.

Oops, must have misread the early post.

The rates I wrote (either 1.1% with limited 手数料 OR 0.85% with a much more substantial 手数料) are the rates quoted the website of Kagoshima Bank for all to see.

My wife thinks the difference may be that the lower rate places are online banks only. Thanks in advance if anyone knows...

Did you see the examples on Kakaku? All the rates are listed there for the big banks. They offer much better rates than you posted, as do most netbanks.

Why not simply apply for pre-approval at multiple banks?

We applied for pre-approval with 7 banks before we got .375% from Mizuho. AU was also competitive.

[RetireJapan]

My wife thinks the difference may be that the lower rate places are online banks only. Thanks in advance if anyone knows...

Nope. I got our mortgage from Shonai Bank (regional bank from Yamagata) at 0.5%. According to Emil's video, the cheapest floating rate mortgages right now are from MUFG and Shinsei, neither of which are online banks.

[freddyfreeway]

I have PR and my wife is Japanese.

Oops, must have misread the early post.

The rates I wrote (either 1.1% with limited 手数料 OR 0.85% with a much more substantial 手数料) are the rates quoted the website of Kagoshima Bank for all to see.

My wife thinks the difference may be that the lower rate places are online banks only. Thanks in advance if anyone knows...

Did you see the examples on Kakaku? All the rates are listed there for the big banks. They offer much better rates than you posted, as do most netbanks.

Why not simply apply for pre-approval at multiple banks?

We applied for pre-approval with 7 banks before we got .375% from Mizuho. AU was also competitive.

This is good to know, thanks! How much did you have to pay upfront (if anything) to get that rate?

[freddyfreeway]

My wife thinks the difference may be that the lower rate places are online banks only. Thanks in advance if anyone knows...

Nope. I got our mortgage from Shonai Bank (regional bank from Yamagata) at 0.5%. According to Emil's video, the cheapest floating rate mortgages right now are from MUFG and Shinsei, neither of which are online banks.

Thank you! Inquiries will be made!

[freddyfreeway]

Does me being 54 years old (and my J wife 53) figure into this? I noticed the first option in the link from tsumitate wrestler shows a requirement of being under 50.

Sorry I'm not linking it here as I'm not exactly familiar with how to do so. (We've been offered a max 26 year loan based on our age)

[freddyfreeway]

I suppose that also is a good question- we've been told by bank and 不動産 alike that based on my being 54 years old that we're only ever going to be qualified for a 26 year loan. Is that true in experience of anyone here?

We also had to show our kusuri techos and for a while there was worry over whether my very minor skin cancer issue from a year + ago was going to be a reason for denial...

[Tsumitate Wrestler]

Does me being 54 years old (and my J wife 53) figure into this? I noticed the first option in the link from tsumitate wrestler shows a requirement of being under 50.

Sorry I'm not linking it here as I'm not exactly familiar with how to do so. (We've been offered a max 26 year loan based on our age)

Oh absolutely, that's a huge complicating factor.

Mortgages are secured by insurance, and insurance of course is more expensive the older we get.

After 50, you'll need to be looking at different rate charts. You and your wife need to sit down and map out the rates available to you, and try to get pre-approved if possible. You'll need to do more research, this is a more complicated process. Expect to pay more and perhaps a larger deposit.

The skin cancer thing will probably just mean you'll be paying more for health insurance if accepted. You may get rejected for the general group insurance and have to pay in to the other options.

As a general rule the mortgage must be completely paid off at 80, and they will not lend you beyond 30-35% of your monthly salary.

[freddyfreeway]

Does me being 54 years old (and my J wife 53) figure into this? I noticed the first option in the link from tsumitate wrestler shows a requirement of being under 50.

Sorry I'm not linking it here as I'm not exactly familiar with how to do so. (We've been offered a max 26 year loan based on our age)

Oh absolutely, that's a huge complicating factor.

Mortgages are secured by insurance, and insurance of course is more expensive the older we get.

After 50, you'll need to be looking at different rate charts. You and your wife need to sit down and map out the rates available to you, and try to get pre-approved if possible. You'll need to do more research, this is a more complicated process. Expect to pay more and perhaps a larger deposit.

The skin cancer thing will probably just mean you'll be paying more for health insurance if accepted. You may get rejected for the general group insurance and have to pay in to the other options.

As a general rule the mortgage must be completely paid off at 80, and they will not lend you beyond 30-35% of your monthly salary.

Thank you so much for your replies! It's starting to make sense more and more. And thanks to Ben as well!

[solo7100]

Because I'm a non-PR, my agent said the bank that is willing to work with us is like 2.0%. Much different than less that 1%.

So I asked is it possible to refinance after getting a PR for a lower interest rate. They said yes, but with all the hurdles and fees associated with refinancing - even to a lower interest rate - I might as well just keep the 2% or whatever it is at the onset.

Does this make sense? I thought it would be a good idea to refinance to a lower rate...?

[zeroshiki]

Well with increasing interest rates it will be hard to say but there definitely is a level where refinancing makes sense. Tons of people do it. Going from 2% to 0.5%, for example, most likely will make sense for a loan of 50M.