A mortgage is a loan that can be used to acquire a home. It is possible to borrow with residential land and buildings as collateral, and bank loans and “Flat 35” are the mainstream.
Borrowing is subject to examination from both the borrower and the property. If you know the characteristics of available mortgages in advance, you can make a financial plan without panicking.
Features of bank loans
Banks and other financial institutions offer their own home loans. There are variable interest rate type, fixed interest rate option type (fixed period varies from 1 to 30 years), and fixed interest rate type for the whole period, but the interest rate type handled by the financial institution is different. Interest rates, guarantee fees, and handling fees vary depending on the financial institution.
In addition, each financial institution is developing its own services, such as the coverage of group credit life insurance, the function and convenience of early repayment, and so on.
The use of bank loan funds is mainly limited to the following.
- Funds for purchasing and building a house to live in
- Funds for extension and renovation of a house for oneself to live in
- Mortgage refinancing funds
- Miscellaneous expenses for buying a house (some financial institutions)
to get a bank loan
The screening criteria and borrowing requirements differ depending on the bank that handles housing loans. Since the details have not been made public, we will not know until we actually submit it to the examination.
Here, we will introduce trends such as what points are subject to review.
Borrower Principal Requirements
age
- Age at the time of application is between 20 and 65 to 69 years old.
- 75 to 80 years old at the time of completion.
work status, etc.
- At least 2-3 years of service or business years.
- In the case of company employees, it is basically difficult to borrow unless they are full-time employees.
Annual income standard
- The minimum annual income is about 2 million yen to 4 million yen.
- The ratio of all repayments to annual income (repayment burden ratio) must be within a certain range, such as 25% to 35%, depending on annual income.
guarantee
- You must be able to obtain a guarantee from a designated guarantee company.
- Some financial institutions do not require a guarantee from a guarantee company or a guarantor.
Group credit life insurance
- Be able to enroll in group credit life insurance (partially optional).
- At most financial institutions, insurance premiums are paid by the bank (included in the interest rate). However, additional insurance premiums such as cancer group credit, three major illness group credits, and coverage for eight diseases are often charged separately.
Property-related requirements, etc.
Properties that can be rented
- Built in accordance with the Building Standards Act.
- If the site is a leasehold or a contiguous building, it may be difficult.
loan amount
- Up to 50 million yen, up to 100 million yen, etc.
Loan period
- Up to 35 years, and the number of years until the age at the time of full repayment reaches 80 years old.
Repayment method
- Equal repayment of principal and interest, equal repayment of principal (some financial institutions do not handle it), and bonus payment can be used together.