 Japan, is one of the most developed countries in the world and has the second largest mortgage market among all the Asian countries. Japan has a very low mortgage rate of 2.375%.
The mortgage market as percentage of gross domestic product in Japan has soared to 40.3 %.
Japan's decade-long banking crisis has created a considerable number of problems in the mortgage market, resulting in a significant drop in land and home prices. As a result, a great deal of money is tied up in problem loans, representing a critical misallocation of resources in the Japanese economy.
Housing Finance Planning In Japan
The last decade nearly battered the capital base of financial institutions due to non-performing loans and forced them to reorganize their business models from lending to industrial enterprises to financing home purchases.
Together with the price crash in the property markets, many have argued for reform of Japan's housing finance system. Currently Japan is reforming its housing finance institutions by redefining the role of the public sector, which in the past had provided a significant amount of subsidized support for home loans.
There are a number of Japanese financial institutions and banks that offer home mortgages and home loans to prospective buyers. Given the somewhat restrictive nature of their lending practices it can be difficult for foreigners to obtain a home loan in Japan.
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