Comparing a 3.84% two-year fixed mortgage quote in Tokyo

T

TrueStone

Buyer
If I choose on the headline rate and the payment jumps beyond my budget after year two, the initial saving will not matter. The quote is for a Tokyo condo costing around ¥43,600,000, with 3.84% fixed for two years. The lower advertised figure did not reflect the fee structure or the loan-to-value band applied to this purchase.

I’m trying to compare like with like: cash paid during the fixed period, charges paid upfront or added to the balance, and the amount still owed when the rate resets. I also need the reset formula and a realistic monthly payment under less favourable rates. Early-repayment charges and the actual written portability terms seem important because they could make changing course expensive. Which measure would you put first when comparing the lenders?
 
To clarify, I’m not assuming I will refinance after two years. That is one possible outcome, but I want the loan to remain affordable if refinancing is unavailable or unattractive when the rate resets. So I’m trying to compare both the initial deal and the downside after the fixed period.
 
You need the post-fix rate or reset formula before APR or two-year interest tells you much. Also ask each lender for the same breakdown: amount borrowed, repayment term, monthly payment, upfront fees, fees added to the balance, and any early-repayment charge. Then compare cash flows over two years and over a longer period without assuming a refinance.
 
There are two reasonable comparisons here. A long scenario with no refinancing shows the downside, while a two-year cost comparison gives a cleaner view of the offers actually available now.

I would not make either one carry the whole decision. Rank the quotes first by total cash cost during the fixed period, using identical loan amounts and fee treatment. Then run the stated reset formula through the monthly budget at several payment levels, without pretending to know the future rate precisely. That keeps the stress test useful while avoiding a forecast dressed up as certainty.
 
Also confirm what “portability” means in the written terms. Can the existing loan actually move to another property, or would a new affordability and property assessment still be required? For a short fixed period, flexibility may be worth more than a modest fee difference. A simple spreadsheet with fixed-period cost, reset payment scenarios, early-repayment cost, and remaining balance should expose which quote depends most heavily on a successful refinance.
 
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