April 2022 Edition
14 Calculation of Income
Persons who can combine their income
You can combine one other person’s income who meets
all of the requirements from (1) to (4) below.
(1) The applicant’s parent, child, spouse, etc.
(2) A person under 70 years old at the time of application(3) A person who lives with the applicant* If the residence is for a relative, you can combine the income of the person
who will move into the house you are financing.
* In the case of a second house or your relative’s residence, the applicant
may not be required to live in the same house with the person whose
income was added.
* If the residence is for the applicant, this requirement is not required for thesuccessor to the parent-child relay repayment. However, the handling mayvary depending on the partnering financial institution.

(4) The person who will become a joint and several obligor

Amount of Income that can be combined
You can combine other income earner’s annual income
up to the entire income amount. However, a shorter loan
period may be applied if the amount added is greater than
50% of the person’s annual income (see (2) in e.g.)).
The maximum loan period when incomes are combined* When using parent-child relay repayment, the calculation is based on
the successor’s age, regardless of the following.

Loan period = 80 years old − age of the elder of the following individuals (1)or (2) at the time of application (rounded up to the nearest year)(1) Applicant(2) Other income earner if combined amount exceeds 50% of his/herannual incomee.g.) When the applicant’s (age 30) annual income is 4 million yen, the otherincome earner’s (age 55) annual income (to be combined) is 6 million yen(1) You can combine the other income earner’s annual income (6 million. yen)in full. In this case, the maximum loan period is 24 years, based on theother income earner’s age (56 years old (rounded up to the nearest year)).
(2) If the combined amount is 3 million yen (50% of 6 million yen) or less, themaximum loan period is 35 years, based on the applicant’s age (31 years
old (rounded up to the nearest year)).

16 When the site is a leased land
Even if the site is leased, you may still be able to use theloan if you meet the following requirements. Pleasecontact the partnering financial institution. You will alsoneed to contact the financial institution if the site issubleased, as handling will differ.
Collateral

Always at ease, with fully
fixed interest rate housing
loan until the maturity

As a general rule, you will be required to create a firstpriority mortgage on the land for the Japan Housing
Finance Agency as the mortgagee.*1*2 However, there arecases where you can use the loan even if the landownerdoes not consent to the creation of mortgage.*3 Pleasecontact the financial institution.
*1 If you have superficies right on the site, a mortgage will be created on thesuperficies.
*2 If your have lease right on the site, the handling varies depending on theconstruction method (e.g., detached house, collective residence), leasehold
type (ordinary leasehold, fixed-term leasehold, leasehold with a building
transfer agreement), and whether to borrow for the leasehold acquisition
costs.
*3 If the landowner is the applicant’s spouse or a lineal relative, a mortgage willbe created on the site without exception.

Loan Period(1) For ordinary leasehold
Will be treated the same as a regular loan period.

(2) For fixed-term leasehold and leasehold with a building transfer
agreement
The maximum loan period will be the shorter of the regular loan period
and the leasehold’s remaining term.

Fixed interest rate until the maturity

Leasehold Acquisition Costs Eligible for Borrowing

Flat 35

The following leasehold acquisition costs (1)-(4) are qualified forborrowing: (1) key money, (2) premium, (3) deposit, and (4) prepaid rent.
* It is conditional that we can confirm from a lease contract, superficies contract,
or other documents that the leasehold acquisition costs fall into the above (1)to (4) and that the payments for these expenses were made.
* If you wish to borrow for the leasehold acquisition costs, you will be asked tocreate a mortgage on the site, a pledge on the leasehold, and so on.
* For premium, deposit, or prepaid rent, you will, as a general rule, be required tocreate a pledge on your right to claim the return of these deposits, in addition
to the above collateral.
* Of the leasehold acquisition costs, transfer fees and acceptance fees are noteligible for borrowing.

Housing Loan Information (purchase program)

Four merits of Flat 35

15 Parent-Child Relay Repayment
If one successor meets all of the following requirements(1)-(3), you can apply even if you are 70 years or older.
Also, regardless of the applicant’s age, the applicant canselect the loan period based on the successor’s age at
the time of application.

Fixed interest rate until thematurity

Support building of secure housing
by offering a variety of options

No guarantor or prepayment
fee required

Support during the repayment
periodFor phone inquiries(1) The applicant’s child, or grandchild (the applicant’s lineal descendants)or their spouse who has a regular income(2) A person under 70 years of age at the time of application(3) A person who will become a joint and several obligor

Notes on Screening Results
Please note that we may not be able to accommodate your request depending on the screening by the partnering financial institution
or Japan Housing Finance Agency. Also, applications will be strictly examined when the loan ratio exceeds 90% to ensure repayment.

Flat 35 is a fully fixed interest rate housing loan provided by the Japan Housing Finance Agency in collaboration with private financial
institutions. Applications are received at these partnering financial institutions. Explanatory documents (e.g., brochures) are available at thefinancial institution you are considering to apply.

Interest-rate
reduction
options andmore!

Please visit Flat 35 website for product details.
Flat 35(Customer Call Center)0120-0860-35Toll free

Please feel free to call us; Open Saturdays and Sundays (except holidays and New Year’s holidays); Businesshours are 9:00-17:00

Search

https://www.flat35.com

If not connected for reasons such as international calls, please call the following number.
Phone: 048-615-0420 (Call charges apply.)

ATTENTION
The Japan Housing Finance Agency periodically confirms whether the applicant or the applicant’s relative physicallyresides in the financed house by sending a certificate of outstanding balance of the loan to the financed house by postal
mail requiring no forwarding.
Please note that, if the Japan Housing Finance Agency finds as a result of such confirmation that the financed house isbeing used for investment purposes such as renting to a third party or any other unpermitted purposes such as being used
as a store or office, the Japan Housing Finance Agency will request the repayment of the entire outstanding loan amount ina lump sum.
Foreign nationals applying for Flat 35 must possess either “Permanent Resident” or “Special Permanent Resident” status
in addition to meeting other application requirements.

Flat 35

6 Borrowing Rate

Fully fixed interest rate housing loan of up to 35 years, offered in collaboration with private financial institutions and the Japan
Housing Finance Agency.

The borrowing rate*4*5*6 varies depending on therepayment period (20 years or less, or 21 years or more),loan to value ratio*2 (90% or lower, or over 90%), type ofgroup credit life insurance*3 and other factors.*7

11 Fire Insurance

The interest rate is fixed for the entire term*1.

Flat 35 Product Overview
1 Application Requirements*1 These include types such as Flat 35 S, which lowers the interest rate for a certainperiod.

3 Houses Eligible for Borrowing

Persons under 70 years of age at the time of application(persons 70 years of age or older can also apply in thecase of parent-child relay repayment).
Japanese citizens, permanent resident permit holders, orspecial permanent residents.
Persons whose total annual repayment ratio for all theborrowings* against their annual income (total debt-to-incomerate) meet the criteria in the following table (there are cases
when other income earner’s income may be combined).
Annual income

Less than ¥4 million¥4 million or more

Criteria

30% or less

35% or less* All borrowings including Flat 35 (and those borrowed by the other income earner
whose income is combined), such as housing loans other than Flat 35, auto loans,
education loans, credit-card loans (e.g., cash advances and purchase of goods ininstallments or revolving payments, by credit cards). It also includes loans forhouses being rented or to be rented — however, do not add to the borrowings if
the loan is for a rental apartment (an entire apartment building or dormitory).

If the house or land to be financed is going to be shared,
there are requirements such as the applicant
himself/herself must have a co-ownership.
Notes
1. Annual income is, in principle, the following amount shown on an official
certificate proving the income of the year previous to the application.
(1): Amount of employment income if you have only employment income.
(2): For those other than (1), the amount of income (the sum of business income,real estate income, interest income, dividend income, and employment income)Houses that meet the technical standards set forth by theJapan Housing Finance Agency.
Houses with floor area*1 that meets the criteria in thefollowing table.
For detached, continuous, and layered constructions*270 m2 or more

For cooperative constructions (flat, etc.)

30 m2 or more

*1 In the case of a dwelling with a store or other multi-use housing, the residential floorarea must be greater than or equal to the floor area of the non-residential part (store,office, etc.).

You can also use Flat 35 for a second house (where youuse (reside) on weekends, etc., other than your currenthome where you are based) or for your relative’s (theapplicant’s or his/her spouse’s parents or children)
residence.

(1) The fund is not available for rental housing or investment properties.
(2) It cannot be used in conjunction with the property accumulation housing loan offered by theJapan Housing Finance Agency.
(3) You cannot borrow an additional Flat 35 fund (including direct loans from the Japan Housing
Finance Agency or the former Government Housing Loan Corporation) to acquire a secondhouse.
(4) As a general rule, housing loan deduction will be unavailable. However, if a relative willreside in the financed house and the person residing there is a joint and several obligor(e.g., a successor to a parent-child relay repayment), the housing loan deduction may beavailable for the joint and several obligor. Check with your local tax office for more information.
(5) Some partnering financial institutions may not allow such use.

The construction costs (including the cost of landacquisition if desired) or purchase price of thehouse*3 Flat 35 is available for those not covered by group credit life insurance for health orother reasons. For borrowing rates in this case, please refer to the Flat 35 website(https://www.flat35).
*4 Borrowing rates vary depending on the partnering financial institution. Information isavailable from the financial institutions and on the Flat 35 website (www.flat35.com).
*5 The borrowing rate is reviewed monthly.
*6 The applicable interest rate is determined at the time of fund receipt, not the time ofapplication, and the partnering financial institution will set the fund receipt date.

There are no site area requirements.

7 Repayment Methods

4 Borrowing AmountYou can choose a monthly repayment method from theequal principal and interest system or the equal principalsystem. You can also use a semi-annual bonus
repayment (within 40% of the borrowing amount (in10,000 yen units)).

Between 1 million and 80 million yen (in 10,000 yen units),
inclusive of the construction costs*1 or purchase price(excluding those related to non-residential part*2).
*2 The construction costs or purchase price of non-residential portions of
the store, office, etc., are not eligible for borrowing.

15 years (10 years if the applicant or joint and several
obligor is 60 years of age or older) or more, and up to theshorter of (1) or (2) below (in one-year increments).
(1) 80 years old − Age at the time of application*1*2(rounded up to the nearest year)*1 If over 50% of the other income earner’s income is combined, the higher of theapplicant’s age and the other income earner’s age will be the reference age.

8 Collateral
You will be required to create a first priority mortgage on
the house and land that are the loan subjects, with theJapan Housing Finance Agency as the mortgagee.
* The customer will bear the mortgage creation costs (registration and license tax,
judicial scrivener’s fees, etc.).

9Guarantor

Not required*2 If parent-child relay repayment is used, the successor’s age is the reference
age, regardless of whether their income is combined.

Notes
1. If (1) or (2), whichever is shorter, is less than 15 years (10 years if the applicant
or the joint and several obligor is 60 years of age or older), the application is not
eligible for borrowing.
2. If you choose a 20-year or shorter loan period, you cannot, in principle, change
it to 21 years or more during repayment.

It shall cover the damage from a fire of the building.
The insurance amount must be greater than or equal tothe borrowing amount*2.
*1 The insurance period and the payment method of fire insurance premiums varydepending on the partnering financial institution. Some financial institutions may also
require to create a pledge on fire insurance claims.
*2 If the borrowing amount exceeds the amount calculated following the valuationcriteria established by the casualty insurance company (appraised value), it shall bethe appraised value.
＊Fire insurance premiums shall be borne by the customer.
＊Please check with your partnering financial institution for fire insurance requirements.

12 Loan Fees and Property Inspection Fees
Loan fees*1*2 vary depending on the partnering financialinstitution.
Property inspection fees*2 vary depending on theinspecting agency or certification technician.

*1 You can include the cost of land acquisition if desired.

(2) 35 years
Note the following if you are using Flat 35 to purchase asecond house or a house for your relatives to reside.

Loan to value ratio ＝*7 Depending on the partnering financial institution, the same borrowing rate may
apply, regardless of the loan period or loan ratio.

5 Loan Period

The fund can be used to construct or purchase a new orused house in which the applicant or his/her relative willreside.

Flat 35 borrowing amount*2 Continuous construction: A construction method other than cooperative housing (twoor more households sharing a corridor, stairs, hallway, etc.), connecting two or morehouses side-by-side.
Layered construction: A construction method other than cooperative housing, where
two or more homes are layered on top of each other.

2. Up to two people, including a joint and several obligor, can apply.

2 Purpose of Fund

*2 The loan ratio is calculated by the following formula.

Until repayment is complete, you will be required to takeout fire insurance (fire insurance from a casualty insurancecompany or mutual fire insurance following the provisionsof the law) for the house that is subject to the loan*1.

10 Group Credit Life Insurance
By purchasing group credit life insurance, the Japan
Housing Finance Agency will receive an insurance payout
if anything should happen to the customer. It will cover
the Flat 35 debt, making further repayment unnecessary.
* Flat 35 is available for those not covered by group credit life insurance forhealth or other reasons.

*1 Information about loan fees is available from the partnering financial institutions andthe flat 35 website (www.flat35.com).
*2 The loan fees and property inspection fees shall be borne by the customer.

13 Guarantee Fees and Prepayment Fees
Not required.
* The prepayment amount shall be 100,000 yen or more if you use the Su My Note
online customer service, or 1,000,000 yen or more if you use the counter at thepartnering financial institution.