Mortgage quote in Japan: 4.32% fixed for 15 years / what am I missing

S

sailsAndQuill

Buyer
Established
The latest Tokyo quote has added enough fees to make the headline rate a poor guide, which raises a new comparison problem. It is 4.32% with a 15-year fixed period on a purchase of about ¥64,260,000, and the applicable loan-to-value band also affects the terms.

Should I compare the lenders using APR, the cash paid during the fixed period, or the cost up to the point when I am realistically likely to leave the loan? I may repay early or move, so portability and exit charges could matter.

I also need to clarify what happens after year 15. If a balance remains and the rate resets, that risk may outweigh a modest saving on the initial fees. What figures would you ask each lender to provide on the same assumptions?
 
I’d compare total cash cost over the period you realistically expect to hold the mortgage, not automatically over 15 years. Include upfront fees, interest, and any cost attached to repaying or refinancing at your likely exit date. APR can help with an initial comparison, but only if every lender calculates it on comparable assumptions.

Also put each quote at the same loan-to-value. Otherwise you are comparing the rate tiers as much as the lenders.
 
Is 15 years the entire repayment term, or only the fixed-rate period? If it resets afterward, what term and balance would remain? That matters more than portability to me, because a comfortable payment now could become uncomfortable after the reset. I’d ask each lender for the monthly payment, balance at year 15, and treatment of arrangement fees.
 
I wouldn’t assume refinancing will be available on attractive terms when the fixed period ends. Your property value, loan-to-value and circumstances may all be different then.

Make a simple comparison for three dates: early repayment, your expected move/refinance date, and year 15. For each, total the cash paid and remaining balance. Then read the early-repayment and portability wording carefully; those features only have value if the conditions fit the move you might actually make.
 
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