This decision reflects a recent adjustment in the ultra-loose policy implemented by the Bank of Japan (BOJ).
Sumitomo Mitsui Banking Corp, the primary banking division of Sumitomo Mitsui Financial Group, will increase 10-year fixed-rate loans by 0.26 percentage points to reach 3.79%. Mizuho Bank, the main banking unit of Mizuho Financial Group, will also raise its rate by 0.3 percentage points to 3.50%. Mitsubishi UFJ Bank, a Mitsubishi UFJ Financial Group division, will be increasing its rate by 0.18 percentage points to reach 3.7%.
Each of these banks has special loan programs available to select customers, resulting in lower rates. Sumitomo Mitsui will charge a rate of 1.14%, Mizuho 1.60%, and Mitsubishi UFJ 1.05%.
Last week, the BOJ surprised the market by raising the cap on 10-year bond yields from 0.25% to 0.5%. This policy change prompted the decision by Japan's largest banks to increase housing loan rates.
