#Japan #Tokyo #Mortgage #LIFULL #homeowner

Overview of the Survey

In July 2025, LIFULL conducted a survey regarding mortgage awareness among homeowners and prospective buyers. This research aimed to delve into how current borrowers and those planning to borrow perceive future interest rate trends and their criteria for selecting banks.

Mortgage Types and Preferences

Both current homeowners and future buyers expressed an increasing preference for fixed-rate mortgages compared to earlier surveys. For current borrowers, the percentage choosing fixed rates increased from previous findings, while prospective buyers showed a similar trend but expressed lingering concerns about fluctuating interest rates.

Income Multiples in Mortgage Decisions

The survey highlighted a shift in the perception of income multiples related to home loans. For prospective buyers, over half reported intending to borrow less than four times their household income. This reflects growing apprehension about taking on excessive debt.

Proportions of Mortgage Payments

Among current borrowers, the percentage of those allocating over 30% of their monthly income for mortgage payments has risen significantly, exceeding those satisfied with their borrowing amounts. This indicates that many are beginning to feel the financial strain due to rising costs.

Buyers’ Intentions and Sentiments

When asked about their purchasing intentions, a decreasing number of prospective buyers expressed urgency about buying before interest rates rise. Instead, there’s been a notable increase in those wanting to purchase before changes in tax deductions, signaling a shift in priorities.

Forecasting Future Interest Rates

The majority of respondents foresee higher interest rates in the coming year, with fears more pronounced among prospective buyers compared to current homeowners. This growing divergence indicates heightened anxiety about affordability and future economic conditions.

Concerns About Affordability

A significant number of prospective buyers reported anxiety regarding their ability to service mortgage debts, highlighting a worrying trend. The disparity in concerns between current and prospective buyers has widened, illustrating deepening fears for those contemplating home purchases.

Strategies for Rate Increases

Approximately 60% of respondents have taken some form of action to mitigate the impact of rising rates, although many have cited a lack of specific strategies or consideration. This shows a combination of awareness and uncertainty about future financial tactics.

Choosing a Bank for Mortgages

The survey also revealed that older individuals prioritize factors such as lower interest rates and secured loans, while younger generations lean towards protections like joint life insurance. This divergence highlights varying priorities across age demographics.

Conclusion and Reflections

The findings from LIFULL’s survey underscore a complex landscape for mortgage consumers grappling with rising interest rates. While awareness is growing regarding the implications of these changes, there is also a noticeable lack of concrete actions taken to manage potential financial strain. The insights shared here will play a crucial role in shaping the future decisions of many within the housing market. As both borrowers and prospective buyers navigate these economic pressures, ongoing vigilance and informed decision-making will be essential.

About LIFULL HOME'S

LIFULL HOME'S offers a plethora of resources for real estate and housing information, helping individuals navigate their housing needs. The company is committed to addressing social challenges through its services, with a focus on enhancing the lives of individuals across Japan.

For more information, visit LIFULL HOME'S.