LONDON/TOKYO – Speculation that the Bank of Japan will abandon its long-awaited negative interest rate policy has caused concern in a country where homebuyers, like those in Sweden, prefer floating-rate mortgages to fixed-rate loans.
For variable rate loans, the interest rate fluctuates on a short-term basis, such as once every six months. It represents about 70% of new housing loan contracts in Japan. In many other countries, fixed-rate loans are usually chosen at the time of borrowing.