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Interest Rate Chart
Structure of PowerSmart Home Mortgage
The PowerSmart Home Mortgage initial interest rate is 1%p.a. During the initial 5 year period, if the distribution yield of newly issued 10-year Japanese Government Bonds (JGBs)¹ reaches 3% at any time, the rate will be revised to 1.9%p.a. for the remainder of the 5 year period, effective from the following interest review date (reviewed semiannually).

On completion of the initial 5-year period, the standard variable interest rate (reviewed semiannually) specified by Shinsei Bank will apply. Alternately, you can change to one of our low fixed interest rates². In this case, if your loan amount is 5,000,000 yen or more after the 6th year of your loan term, 0.4% will be deducted from the bank's standard rate throughout your loan term (variable rate is not subject to this offer).
Interest rate after 5 years
"Preferential rate" (6-month variable rate) will be applied after initial 5-year period. You will have the option to change to a fixed rate (please contact us if you wish to change to fixed rate). In case your loan amount is 5,00,000 yen or more after the 6th year of your loan term, 0.4% will be deducted from the bank's standard rate throughout your loan term (variable rate is not subject to this offer).
Please click here for the latest interest rate.
Interest Rate Chart
Case study
The yield of the newly issued 10-year JGB does not reach 3% for 5 years.
The yield of newly issued 10-year JGB reaches 3% during the 27th month and the interest rate is revised from 1%p.a. to 1.9%p.a. from the 30th month.
• The above interest rate is reference for special interest rate. Actual interest may differ to applicable interest rate.
Interest rate simulation
In case the rate is revised, average interest rate for the initial 5 years will be as follows.
Average interest rate chart
The month when yield of newly issued
10-year JGBs reached 3%p.a.		 Average interest rate over
the initial 5 years
1st to 6th month 1.81%p.a.
7th to 12th month 1.72%p.a
13th to 18th month 1.63%p.a.
19th to 24th month 1.54%p.a.
25th to 30th month 1.45%p.a.
31st to 36th month 1.36%p.a.
37th to 42nd month 1.27%p.a.
43rd to 48th month 1.18%p.a.
49th to 54th month 1.09%p.a.
55th to 60th month 1.00%p.a.
• The above average interest rate chart and interest rate simulation should be used is for reference only. The average annual interest may differ according to the loan term and other factors.
• The above figures are calculated using the weighted average, in semiannual blocks.
FAQ
Q. What is the outlook for newly issued 10-year JGBs?
A. No one can predict future movements in interest rates accurately, however the graph on the right shows you the trend over the past 10 years.
*The graph only shows the past movements, and does not represent Shinsei Bank’s forecast or expectations.
Q. How should I evaluate the possible revision of the initial 1%p.a. interest rate to 1.9%p.a. dependent on market conditions?
A. 1%p.a. is a very competitive rate. There is a possibility that the interest rate will be revised to 1.9%, should the JGB rates move substantially. If you judge the JGB rates will not move dramatically over the next 5 years, take advantage of the 1% low interest rate available now.
Q. Up to what amount can I borrow?
A. This depends on your individual situation, however you can roughly calculate this figure using the following formula: Applicable loan term multiplier x your annual salary. For a 15-year loan, you can borrow up to 3.9 times your annual salary; for a 30-year loan, you can borrow up to 6.1 times.
Loan Term (years) 10 15 20 25 30 35
Multiplier 2.8 3.9 4.8 5.5 6.1 6.5
• Shinsei Bank cannot guarantee approval of your desired loan amount. Details of the simulations outlined above may vary due to market and interest rate fluctuations, and repayment period chosen. The loan term multiplier quoted above is applicable to the entire loan amount. The multiplier assumes no other significant debt.
What we offer for PowerSmart Home Mortgage
Save money Reduce loan burden
[About PowerSmart Home Mortgage]
PowerSmart Home Mortgage is available to ALL customers (including non-permanent residents in Japan) satisfying all of the following requirements.
• Age 20 or above but 65 or younger at the time of borrowing, and younger than 80 on maturity date.
• Qualifies for group life insurance (the insurance company will be nominated by and costs covered by Shinsei Bank).
• Annual income before tax for the previous fiscal term of 4 million yen or more.
• Other qualifications and conditions specified by Shinsei Bank.
Loan amount must be 5 million yen or more not exceeding 100 million yen (in units of 100,000 yen).
  Loan term must be 5years or longer up to 35 years (in units of 1 year).
Interest Rates: Variable rate (reviewed semiannually); Fixed rate (1 year, 3 years, 5 years, 7years and 10 years).
Currently, we only handle refinance of loans and loans for new purchases of a house or apartment (in the case of purchase of the structure only, disbursement will be made once on completion of building). Loans for purchasing land only or purchasing/building a structure financed separately/remodeling a structure only are not available, including those to be taken out in conjunction with loans for refinancing. Customers are not permitted to take out two or more home mortgages with Shinsei Bank.
  Smart Payment: Minimum prepayment is 10,000 yen.
Collateral: A first priority “revolving mortgage” (ne-teitou-ken) will be registered on the land and the house for which the loan was granted.
Guarantor: In principle, there is no need to appoint a guarantor. However, you may have joint income guarantors. In some cases a guarantor may be deemed necessary depending on the results of the credit approval process.
Service fee of 50,000 yen (including consumption tax, appraisal fee of 8,000 yen, and reference fee for personal credit information of 500 yen) will be charged.
You cannot use PowerSmart to refinance an existing Shinsei Bank home mortgage.
Campaign details and interest rates are subject to market fluctuations, and may change.
• Once the applicable interest rate is revised to 1.9%p.a., the same 1.9%p.a. interest rate will remain effective throughout the initial 5-year period, regardless of any changes (whether upward or downward) in the yield of newly issued 10-year JGBs occurring thereafter. Furthermore, after the initial 5-year period, the standard variable interest rate specified by Shinsei Bank will apply (reviewed semiannually during the term of the loan). Customers can choose a fixed interest rate upon request. In this case, a commission of 5,000 yen (including consumption tax) will apply to change the interest rate to a fixed rate.
• Agreement for Creation of Provisionary Registered Security Interest : In order to offer this product to non-permanent residents, Shinsei Bank must appoint a registered lawyer and have this agreement drawn up. The registration and legal charges are to be covered by the customer.
• Agent for Service: Applicants must appoint a Japanese national to act as their agent for service.