Refinancing mortgage

[Wales4rugbyWC23]

Has anyone had experience refinancing their mortgage? I see some really low interest rates on offer now. At present we pay 1.35% variable with SMBC which we took out about 8 years ago. What was the experience like and what were the financial costs involved?

[RetireJapan]

Haven't refinanced, but we pay 0.5% variable so I would guess it would make sense to change unless your original bank has extremely high switching fees.

It might also be worth talking to your current bank and asking them to match other offers you get: less paperwork, same result. A friend of mine did this a few years ago and got his interest rate reduced.

Anyone else?

[goodandbadjapan]

I don't remember the details but I switched mortgage lender and it was simple enough. There was a penalty but I don't recall what it was, just that after 7 years I would have recouped whatever it was while paying a smaller monthly repayment. In other words, I started paying less each month and to be honest didn't even really notice the penalty. It may have been wrapped up into the new mortgage. I didn't actually go looking for a new mortgage provider though, but rather was approached by the bank where I did my regular banking.

[Wales4rugbyWC23]

About 0.2% of that 1.3% is for long term health cover for serious illnesses. Also SMBC gave free life insurance for the mortgage. Do the 0.5% deals offer anything like that?

[RetireJapan]

For my mortgage (30 years at 0.5% variable) they threw in life insurance and cancer insurance for free. Not sure exactly how that worked (something to do with me being under 40 at the time?), but apparently if I die or get cancer the mortgage will be paid off by the 'insurance'.

I went round all the banks here and the best one was a local bank from Yamagata (I'm in Miyagi).

[Wales4rugbyWC23]

At the time we were applying for a mortgage, we didn't have PR and we had been rejected by our local bank, who I was banking with. Our housebuilder with Mitsui Home and the sales rep said 'we have our own bank, so a mortgage won't be a problem' Our mortgage application sailed through with SMBC and the day we got our mortgage application accepted was the exact same day my postcard came through for PR.

[jcc]

For my mortgage (30 years at 0.5% variable) they threw in life insurance and cancer insurance for free. Not sure exactly how that worked (something to do with me being under 40 at the time?), but apparently if I die or get cancer the mortgage will be paid off by the 'insurance'.

I went round all the banks here and the best one was a local bank from Yamagata (I'm in Miyagi).

I believe that the 団体信用生命保険 that you're referring to is required to be in all home loans. Perhaps minor details may very between them, but in general if the loan taker dies or becomes unable to work(e.g. cancer) the loan is payed off.

Also, it's not a cancer insurance(unless you got an extra option) in that you won't get hospital treatment etc covered, it just covers inability to pay due to 重度障害 e.g. any kind of disability that prevents you from working

[RetireJapan]

Also, it's not a cancer insurance(unless you got an extra option) in that you won't get hospital treatment etc covered, it just covers inability to pay due to 重度障害 e.g. any kind of disability that prevents you from working

I'll have to check, but I remember them specifically saying if I got cancer the loan would be cancelled. I actually asked them whether *any cancer* would do it and they said yes

[Petronius]

I just received PR so I thought that I might as well try to get a better deal on my loan.
I have 35Y fixed@1.58% from SMBC.

After doing a simulation on Kakaku https://kakaku.com/housing-loan/ it seems that Aruhi and SBI could offer significantly better rates.
I applied online to both. I am awaiting an answer from SBI. I couldn't complete the application process at Aruhi as they required that my loan be at least 11 months old before I could apply for their refinancing option.

I will update once I get an answer from SBI.

Update: same story for SBI, they require a full year. Also they wanted me to send all the application papers (jyuminhyo, tax receipts etc.) before giving me a loan rate.

[jcc]

Also, it's not a cancer insurance(unless you got an extra option) in that you won't get hospital treatment etc covered, it just covers inability to pay due to 重度障害 e.g. any kind of disability that prevents you from working

I'll have to check, but I remember them specifically saying if I got cancer the loan would be cancelled. I actually asked them whether *any cancer* would do it and they said yes

Yes, that's probably the case. What I meant is that "cancer insurance" generally includes hospitalisation/treatment etc, and that it's worth considering that this is only insurance for your home, it's not insurance for your health(unless it's an extra option you took)