mortgage market in japan is all right or?

Sub prime loan problem spreads to also Japan

The sub prime loan which occurs in the United States shakes the circulation of money capital market in the world, the Japanese stock market fell to temporary confusion.It is expected that the composure returns to the market by the fact that American government announces measure to 8 ends of the month, but because the root of problem is deep, when time is required for the solution, either the viewpoints are not few.

Sub prime loan is housing loan for the individual whose confidence power such as income is low low.Repayment stagnating, it burns and also amount and the interest where the risk where being attached occurs is high from general housing loan are set to raising.

That when you say, whether loan of the interest where the person whose debt service capacity is low why is high can be borrowed because loan of the mechanism that is many, at the beginning just several years the interest it makes low, just interest it should have been paid is.Furthermore because in the United States price increase of residential price is continued for a while, loan burns as a financial institution and is attached and if sells the residence which is taken in mortgage, because you can collect, there is a circumstance that it had been lent out positively.

Problem more with conversion into securities in a complicated way

That with the residential price depreciation in the lately United States, defectiveness of the system coming to the surface at a stroke was connected to the latest confusion.this is also rising interest rates until the loan, it has been blackened to avoid the loan by the borrower to refinance with lower interest rates more, such is the way out was gone in a decline in collateral value of housing.

what are you confusing the issue further, financial institutions and securitization of sub-prime mortgage loans, , which was a sale to many investors. as financial institutions is the assumption was not always get to investors risk, would become apparent as the frequent occurrence of the risk that blackened., now that many investors suffer a loss.

the current financial market has been very complicated in the development of technology, fragmentation of the risk is progressing. therefore, what that has spread in the range of how much of the extent to which risk has been difficult to see, that it is the current situation is further aggravated the situation in the market led to paranoia.

sub-prime mortgage risk is low in japan?

mortgage market in japan is probably the copper back in. a similar problem occurs fear why does not.

the first sub-prime mortgage itself, recently, a similar mechanism mortgage has appeared in japan. although we are dealing in partnership with foreign financial institutions such as regional banks primarily, changed jobs or self-employed, such as low-income earners rather than, such as city banks and the door on people who are not meeting the conditions to have the ability to loan repayment actually surface is so strong that for.

and therefore, you might say the risk is low compared to the sub-prime mortgage blackened the united states. has increased temporarily as a blackened, originally so small a percentage of the mortgage market, you think there is no impact is so large.

on the next page is the japanese think about the loan securitization.

flat35is representative of the loan securitization

what worries me than it is, securitization is the risk faced by. mortgage securitization utilizing this place has been increasing in japan. simply, although the u.s. sub-prime mortgage interest rates will rise and the end of the period originally fixed low interest rates, in japan is so often be utilized in long-term fixed rate loans.. not to fix the interest rate so ask them to take over interest rate risk to investors, in that sense would say that the benefits to borrowers and structured.

speaking of fixed-rate mortgage that utilize securitization in japan, the most common is flat35is. financing point of contact is a private financial institutions, bought securitized loans that jhf is, technique has been sold to investors at the center.

flat35and sub-prime loans in terms of securitization, but has in common with, otherwise much difference. the first is the level of interest rates, flat35is8average interest rate of the month3.171%as the lower fixed interest rate will therefore.

flat35there are many people who use solid!?

above all, flat35does not mean that people with low credit quality loans. although supposed to be by the door on years of service and professional does not, standards relating to revenue have been clearly established. there are also criteria such as size and quality are provided to purchase housing, are many people who have purchased a quality home in a relatively solid financial plan.

simply, there is also a movement should be noted. flat this place35is that in the direction of loan conditions will be eased. this year4from month, of property prices until then8that loan limit was assigned to9has been divided up into. when you buy a house down payment is generally2desirable but has been more than 40%, 1even if there is only a flat percentage35the house became able to buy a.

income criteria10be relieved from mon

further10from the month you will also be reviewed income criteria. the changes are as follows:.

9until may following2both of satisfying.
1.flat35amount of monthly repayment4that there is a monthly income more than doubled.
2.percentage of total annual repayment of all borrowings accounted for annual income(the total debt-to-income ratio)that is less than or equal to the following criteria:.
· annual income300less than ten thousand yen……25%
doe300more than ten thousand yen400less than ten thousand yen……30%
doe400more than ten thousand yen700less than ten thousand yen……35%
doe700more than ten thousand yen……40%

10from mon following1is only oneOK.
that the total debt-to-income ratio is less than or equal to the following criteria:.
· annual income400less than ten thousand yen……30%
doe400more than ten thousand yen……35%

the more risk to increase borrowing

amount of monthly repayment4monthly income more than doubled by that criteria will be abolished, many people will be the amount borrowed is more than ever. according to an estimate of annual income the same mechanism700people of ten thousand yen4500if you buy a property of ten thousand yen, the maximum amount to be borrowed in the3,681from ten thousand yen4,050it is a layer up to ten thousand yen(interest rates3.2%, 35if the repayment year).

and lead to an increase in relaxation of blackened immediately a set of loan terms do not think. simply, that increases the amount of borrowing, repayment burden becomes heavier the more, is a fact that the risk increases. people now own a mortgage to rent amount of return better assess, please do endeavor to prudent financial planning.