The end of nearly cost-free mortgages in Japan is set to bring significant changes, with homeowners anticipating increased monthly payments as interest rates are expected to rise.
With the Bank of Japan increasing rates after decades of zero interest, many homeowners accustomed to low mortgage costs will see their payments grow substantially, impacting their spending.
Contrary to the U.S. market, where fixed mortgage rates prevail, most Japanese loans are variable, directly affected by the central bank's decisions, leading to potential economic shifts.
As households brace for rising mortgage costs, a reduction in spending may occur, threatening to further strain Japan's economy, which is already facing challenges due to weak consumption.
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