Mizuho Bank introduces flexible mortgage payment program

First of its kind for a Japanese bank.

Mizuho Bank this week introduced a housing loan program that lets borrowers reduce their regular repayments when they are in need of money and repay the installments when they are in better financial shape.

The program will allow borrowers to make smaller repayments when finances become tight due to such reasons as a need to increase spending on children or home improvements, or a drop in income caused by maternity leave. It can be applied to existing housing loans.

Borrowers can make bigger repayments when households have greater financial capacity, such as when both the husband and wife are working and children have grown up.

The program is the first of its kind for a Japanese bank. Applicants must already have clean repayment records, and existing borrowers must have an income no lower than when they first applied for their mortgage.

The reduction rate and the period, which is limited to one year, must be agreed upon by the applicants and the bank in light of the repayment plans for their mortgages. The program cannot cover periods over a year but can be used multiple times for up to five years.