Japan’s Financial Services Agency is increasing oversight of internet banks and
other lenders offering ultra‑long mortgages as the housing market heats up.
Loans with terms up to 50 years are becoming more common among lower‑income
young buyers; the traditional maximum was 35 years. The regulator said it is
concerned repayment risk will rise if interest rates increase or borrower
incomes fall and will step up monitoring and, where needed, engage banks
directly. Lenders including SBI Shinsei Bank and Rakuten Bank now offer
40–50‑year loans; borrowers on 50‑year floating‑rate mortgages face longer
exposure to rate rises. The Bank of Japan is widely expected to continue
tightening policy, which the FSA says could pressure borrowers who judged
affordability on initially low monthly payments.
