To Dads Fearing Rising Mortgage Interest Rates: 3 Reasons Why Financial Planners Advise 'Don't Rush Into Early Repayment'

■ Introduction

“Every time I see news about the Bank of Japan raising interest rates, my stomach hurts wondering if my monthly mortgage payment will go up.”
“I took out a variable-rate loan, but should I switch to a fixed-rate loan right now? Or should I drain my savings to make an early repayment?”

On a Wednesday in the middle of the week, as you stare at your news app or your bank balance, are you feeling that same anxiety in your chest?

For a dad in his 30s who bought a home and is raising three children, “rising mortgage interest rates” is a real fear that hits daily life directly.

On social media, extreme opinions like “variable rates are a path to ruin” or “pay off your debt early right now” fly around, fueling your impatience.
However, as a career coach with financial planning expertise, and as a father who is also carrying a mortgage while raising children, there is something I want to tell you calmly.

Just because interest rates might rise, please absolutely do not rush to dump your available savings into early repayment.

Reducing your cash on hand is the greatest risk of ruin for a dad in the child-rearing generation.

I will share the “household defense techniques that won’t be swayed by rising interest rates,” which I practice by combining the business design thinking I learned at the Recruit Group with my financial planning knowledge, after having once escaped into alcohol due to the pressure of repayments and the fear of money, nearly destroying my family.

A Past Where I Nearly Destroyed My Family Under the “Pressure of the Loan”

When I was working in insurance sales on a full commission basis, I showed off by saying, “A man isn’t a man until he buys a house,” and took on a mortgage that was right at the limit of what I could afford.

However, the moment I failed to produce results in sales and my income plummeted, that loan turned into a giant chain that choked me every month.
“Will I make the payment this month?” “Can I afford the bonus payment?”
Crushed by that pressure, I began to numb my anxiety by downing cheap alcohol almost every night.

When I got drunk, I would lash out at my wife, who was exhausted from single-handedly raising our children, saying things like, “Who do you think is paying for us to live in this house?!”
My wife cried and told me, “I would have been many times happier living in a small apartment with a smile than living in a house like this,” and our family was on the verge of complete collapse.

I couldn’t properly control my anxiety about money, and the house that was supposed to protect my family had become the source of their suffering.

Why Do Financial Planners Say “Don’t Rush Into Early Repayment”?

After that, I changed jobs to the Recruit Group, and what I realized after rebuilding my household finances through sales organization management, business design, and obtaining my financial planning certification is the overwhelming importance of a “cash shield (the thickness of your cash reserves).”

There are three reasons why you should not rush into early repayment.

1. Money once returned to the bank never comes back to your hands

Even if you scrape together your savings to make an early repayment and reduce your monthly payment by a few thousand yen, if your bank account ends up empty, you won’t be able to withstand a sudden illness, a job change, or the payment of your children’s school expenses tomorrow.
Having cash on hand that you can move at any time is 100 times more important for protecting your family than reducing your debt.

2. Variable interest rates have a “5-year rule/125% rule” buffer against drastic changes

General variable interest rates (principal and interest equal repayment) come with a “5-year rule,” where the repayment amount does not change for 5 years even if interest rates rise, and a “125% rule,” where the repayment amount after a review can only increase up to 1.25 times the previous amount (*excluding some banks).
It is structurally impossible for your repayment amount to double overnight. There is no need to panic excessively.

3. You have the strongest life insurance called “Group Credit Life Insurance (Danshin)”

Mortgage loans come with group credit life insurance, which reduces the remaining balance to zero in the unlikely event that something happens to you, the dad.
Panicking and reducing your own funds to pay off debt is the same as shrinking this generous coverage yourself.

“3 Household Defense Steps” That Won’t Be Swayed by Rising Interest Rates

So, how should we prepare for rising interest rates? These are the steps my family practices.

Step 1: Check the “application conditions” of your mortgage in your contract

Take 5 minutes tonight to look at your documents and confirm the interest rate type you have and whether the 5-year rule and 125% rule apply. Just knowing the true nature of the enemy will cut your anxiety in half.

Step 2: Save the “repayment difference if interest rates rise by 1%” in a separate account

Simulate how much your monthly repayment would increase if interest rates were to rise by 1% (e.g., an increase of 15,000 yen per month).
Save that difference in a separate “defense account” as if the rates had already risen.
If interest rates don’t rise, that money simply becomes net assets for education or family funds, and if they do rise, you can just cover the difference from those savings.

Step 3: Prioritize preserving your cash on hand during the mortgage deduction period

While the deduction period remains, the iron rule is to pool your living defense funds generously rather than rushing to make repayments.

[Current Daily Life] ‘Family Peace of Mind’ Gained by Visualizing the Numbers

By rethinking my mortgage through ‘numbers and rules’ rather than emotions or fear, my family’s financial anxiety has completely vanished.

I am not swayed by news of rising interest rates, and because I have emergency savings on hand, there is no need to cut back on our daily lives.
By giving up alcohol, arguments with my wife have dropped to zero, and we have reclaimed a daily life where our family of five can spend peaceful weekends together in the living room.

A home is a vessel for a family to laugh and feel secure.
Without letting interest rate figures dominate your mind, let’s protect the warmth of the family you have right here, right now.

Conclusion

You are an incredibly reliable father just by carrying the heavy burden of a mortgage for your family and heading to work every day.
There is no need to be misled by sensationalist online rhetoric or to corner yourself.

Start by flipping through your contract documents tonight.
Why not start building a solid mental defense line to protect your family from that small act of verification?

[Reader Exclusive: Official LINE Information]

For those wondering, ‘How should I prepare for rising interest rates with my mortgage?’ or ‘I want to know the appropriate amount for my emergency fund,’ I am distributing a free ‘Household Defense & 10-Year Cash Flow Simple Design Sheet for Dads in Their 30s’ via my official LINE.
I am also accepting applications for a 30-minute free individual online consultation (sounding board) for a limited 3 people per month. Please feel free to take advantage of this.

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