What is “Flat 35”?

According to a survey conducted in 2020, the lowest interest rate “variable type” has the highest usage rate at about 60%, followed by “fixed-term selectable type” and “full-term fixed type”. The interest rate may be the top decision-making criterion for borrowers. Although only about 10% of the total borrowers use the “Flat 35” product, it is said to be used by many people who choose the full-term fixed-rate type because of its several advantages. The loans are provided by financial institutions, and the Japan Housing Finance Agency (formerly the Japan Housing Finance Corporation) purchases the securitized loan receivables and guarantees them. In terms of the number of financial institutions handling the loans, it is said that the “purchase type” accounts for most of them, and the following information is based on the “purchase type”. The interest rate is a little higher (which is an advantage if the interest rate rises), but there are some advantages to having a public institution involved, and it is considered to be a familiar housing loan for users.