In an effort to stimulate the economy and enhance the housing demand, the government of Japan is planning to introduce a mortgage-reduction program in 2010 to homeowners taking out new loans from a state-affiliated lender, Nikkei reported Sunday.
Homeowners availing 35-year loans from an affiliated lender will have the mortgage rate reduced by 1 percentage point for the first 10 years. The offer will be available only for those taking loans next year for energy-efficient, handicapped-accessible or quake-resistant homes.
The Japan Housing Finance Agency reportedly charges a fixed annual interest rate on the loan, which was developed jointly with private lenders. As the rate stands at 2.6% per annum now, those who participate in the program will have to pay only 1.6% interest on their loans for the first 10 years.
The Japanese government is planning to set aside about JPY 260 billion for the program in its second supplementary budget, which is now being drafted.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.