SAPPORO, Oct 27 (News On Japan) - More homebuyers in Japan are turning to ultra-long housing loans, with some mortgages now stretching as long as 50 years as buyers try to keep monthly payments down in the face of sharply higher construction costs.
Model homes at a housing exhibition site in Hokkaido showcase features such as brick-style exterior walls, large balconies and open-plan living rooms that appeal to young buyers who dream of owning a detached house but worry about taking on heavy monthly repayments.
"Owning a home is my dream, but I don't want to spend my life struggling with the mortgage every month," one reporter said while introducing the trend among younger buyers.
The price of newly built single-family homes in Hokkaido has continued to climb as construction material costs surge. A typical new detached home that cost 27.38 million yen in early 2017 has risen to 36.47 million yen by the second quarter of 2025. With loan principals getting larger, more buyers are choosing to borrow over a longer period to reduce the monthly burden.
"If possible, I'd like to pay it off over 40 years or so, at a level I can afford without pushing too hard," said one prospective buyer in his 30s. Another buyer in his 30s said, "With 35 years, the monthly payment might be a little too high. With 40 years, maybe I could clear the balance using my retirement payout."
The Japan Housing Finance Agency, known for its long-term fixed-rate mortgages, offers the popular "Flat 35" plan, which allows borrowers to lock in a fixed interest rate and repay over as long as 35 years. But the agency says demand is now shifting toward an even longer product.
"In particular, applications for 'Flat 50' are 4.4 times higher than a year earlier," said Keisei Saito of the agency's Hokkaido branch.
Flat 50 extends the repayment period to as long as 50 years. Applications have increased sharply in Hokkaido this fiscal year, rising 4.4 times compared with the same period last year.
"Home prices are going up," Saito said. "That naturally pushes up the monthly repayment amount. We’re seeing more people who want to hold down that monthly payment as much as possible."
Under the Flat 50 terms, the loan must be fully repaid before the borrower turns 80. That means anyone taking out the longest 50-year plan needs to apply while still in their 20s.
Financial planner Keiko Kato says that under typical interest-rate assumptions, a borrower who takes out a 50 million yen mortgage under Flat 50 would pay roughly 30,000 yen less per month than under Flat 35.
However, the total amount paid back over the life of the loan would be more than 10 million yen higher than with Flat 35.
Kato cautions that households with children will need to cover education costs while continuing to repay the loan, and says buyers should think carefully about whether they can keep making payments over such a long period.
Source: HBCニュース 北海道放送
