In the first quarter of 2023, outstanding housing loans granted to households in Japan amounted to 227 trillion Japanese yen. With around 22.3 trillion yen in outstanding home loans, public lenders accounted for roughly nine percent of the total amount.
Leading types of lenders in Japan
Domestically licensed banks represented the leading type of lender in fiscal year 2022, accounting for more than 65 percent of outstanding mortgages. They were followed by the Japan Housing Finance Agency, Shinkin banks, and labor banks. The value of new home loans originated declined by around four percent compared to the previous year.
Japan Housing Finance Agency
The Japan Housing Finance Agency was the largest public housing loan lender. In cooperation with private institutions, the government-affiliated organization ensures the provision of long-term fixed-rate housing loans, such as the Flat 35 loan, by securitizing them under its loan purchase program. Next to securitization support, the JHF also offers housing loan insurance services and direct lending for reconstruction and maintenance.