Interest rates are back. What will happen to my mortgage? A story about going to the bank counter to ask about mortgages

I hate panicking after something has already happened.

There is no need to play it by ear. Besides, it is not a game anyway.
I took out my mortgage about eight years ago.

The current interest rate is 1%, and the 10-year fixed-rate special agreement will end midway through the year 2034. It is still a while away. However, lately, I have been hearing talk of 3% or 4% interest rates, and I have become restless.

Right now, the interest I pay every month is around 30,000 yen. In my head, I end up simply multiplying that by three or four. 90,000 yen, 120,000 yen. Wait, just in interest? Every month?

No, wait a minute. The future balance will be different, and there must be specific conditions for a mortgage. I am scaring myself based only on numbers I heard in passing.

I will go to the bank where I borrowed the money and ask about the current situation.
Early October 2026. I headed to the bank counter, which I usually only visit for ATM errands.

Is it okay if I just ask some questions?

I have been there before for consultations on taking out a loan. This time, I just want to know the latest information. I have no plans to perform any procedures. It feels a bit unsettling to just ask and leave immediately.

So, I briefly thought about what I wanted to ask and in what order. What happens when the fixed-rate special agreement ends? What are the current interest rates? What are the fees for partial early repayment?

I will be fine if I am prepared. Even thinking that, I am weak against unexpected developments. What if they start trying to sell me other products? In that case, I will just listen to the gist of it.

It is not like I am entering an unknown place. It is the bank I always use. Yet, I feel a different kind of tension than when I head to the ATM. With a machine, I just need to perform the necessary operations and leave. At the counter, nothing starts unless I explain the purpose of my consultation myself. I double-checked that initial explanation in my head once more.

Ding-dong. The announcement calling a number echoed.

Me: “Um, this isn’t for a procedure, but I wanted to ask about the recent trends in mortgage interest rates…”
Bank clerk: “Certainly. Please wait a moment until the person in charge arrives.”
Inner voice: I bet a middle-aged man will come.

The person who appeared was a young woman. She was different from the person I had imagined in my head.
It was a bit unexpected.

Bank clerk: “Sorry to keep you waiting. How can I help you today?”
Me: “I took out a mortgage here about eight years ago…”

I take out my passbook and repayment schedule.
Inner voice: That’s right. First, I need them to check my contract.

Since I am a tax accountant, I am used to talking about money. However, I don’t usually talk about my own money with others. Today, I am not the one explaining, but the one seeking advice.

Panicking on my own after looking at numbers

Me: “Do I get any notification before the fixed-rate special agreement ends?”
Bank clerk: “We will send you a notice by postcard about a month before. You will have to choose between a fixed or variable rate.”

Inner voice: I see. I can choose. But if I reach that day without thinking about it, I will have to decide in one month.

Me: “If I do nothing, it automatically becomes a variable interest rate, right?”
I nod while listening to the explanation. I have started to see a little bit of how my contract will move in the future stages.

Me: “I heard that interest rates are around 3% now, and I’m really worried. I thought it would jump three times from the current 1%…”
Bank clerk: “There are deduction items from the base interest rate. It also varies depending on the customer.”
Inner voice: Phew. As I thought, the displayed number is not necessarily the interest rate that will apply to me.

I was shown a flyer for explanation. My eyes were drawn to the numbers indicating the preferential margin. I listened while comparing my contract with the product conditions on the flyer. Which number is subtracted from where? If I get this wrong, the whole story changes.
However, I see even higher numbers for the fixed interest rate.

Me: “For fixed… oh, it depends on the special agreement period. Even considering the preferential margin, there is a possibility that a 10-year fixed special agreement will be higher than the current 1%…”

Inner voice: What. It will be that much higher than now?!

The bank clerk listened while smiling.
Me: “I wonder if it would make a difference if I made a partial early repayment. No, this is quite impactful.”
Inner voice: Oh, I’m the only one talking.

The future applicable interest rate was not decided today. I know that. Even so, when I see the numbers, I can’t help but speak out. The bank clerk listened to my words without rushing me.

It is easy to talk to someone who is not afraid of numbers. I can also ask frankly while presenting numbers. Before I knew it, my initial tension had gradually faded.

I didn’t just want them to reassure me that everything would be fine. I wanted to know what was decided and what was not yet decided. Being able to ask questions while looking at the materials helped me understand which numbers my anxiety was born from. Perhaps I had spent too much time worrying without knowing.

Even though I’m just taking notes

Me: “How often does this flyer change?”
Bank clerk: “The base for fixed interest rates is reviewed every month, so the flyer is also updated every month.”
Inner voice: Every month. It’s moving even while I’m unaware.

Next, I received an explanation about variable interest rates.
According to the bank’s explanation, the base interest rate is reviewed twice a year, in April and October.

This is an important point. Note, note.
I look for something to write with. I look at what is on the table and grab something like a pen. Wait, this doesn’t write. It’s not a ballpoint pen. I fumble around in a panic.

Me: “Oh, I’m sorry…”
Ding-dong. The sound of calling another customer echoes.
Inner voice: Oh no, oh no. I’m panicking just from taking notes.

Me: “Is today, by any chance, right after a change?”
Banker: “That’s right. It is right after a change.”
Inner voice: Nice timing. Me.

The base interest rate on the flyer was 3.575%. Before that, it was 3.325%, which was explained as a 0.25 point increase.

However, while listening, I misstated the numbers.
Even though I had just heard them, wait, how much was it before the increase?
Banker: “Before the increase, it was 3.325%, so…”
Me: “Ah, I just need to subtract. I understand, I understand.”
Inner voice: I’m sorry. I’m the one making things complicated.

I checked the difference and finally calmed down. Just because I work with numbers doesn’t mean I can always speak smartly. Moreover, this is about my own mortgage. My ears, mouth, and brain were moving at slightly different speeds.

Laughter at the counter

Me: “Is this kind of preferential margin something that varies by bank?”
Banker: “It varies depending on the bank… how much they focus on mortgages.”

Me: “I see. I was wondering if other banks are rivals…”
The banker chuckled.
Inner voice: Oh, I got a laugh.

Me: “No, I don’t intend to refinance with you.”
At first, I thought I would ask the necessary questions in order. However, when I was listened to with a smile, the words came out. At work, I often have opportunities to talk to the same people. The conversation with a professional different from my usual circle was unexpectedly refreshing.

We talked about keeping the current 1% fixed-rate special agreement as it is for the time being. I didn’t come here today in a hurry to change my contract.

I wanted to confirm where I stood.

Finally, I asked about the fee for partial early repayment.
Banker: “If you process it online, the fee is free.”
Me: “Is it about 10,000 yen at the counter?”
Inner voice: Sorry for the wild guess.

Banker: “It is 33,000 yen.”
Me: “I see. Excuse me.”
Laughter returned again.

Inner voice: I got a laugh here too.
No, the fee is not a number I can laugh off.

Both the interest rate and the fees were explanations I received at that bank on that day. It’s not that the conditions are the same everywhere. They may change in the future. However, there was meaning in hearing concrete numbers at the place I use.

A day I want to go and ask again

After finishing the twelve-minute interview, I left the bank. My steps felt lighter.
The worry about interest rates rising hasn’t disappeared. I still don’t know what the percentage will be when the fixed-rate special agreement ends.

However, I could see the current level and the options available to me. It felt like the anxiety I had inflated three or four times in my head had turned into things I needed to confirm.

Next, I want to come and ask in early April, and then in early October. Since I know the review period for this bank, it’s easy to create an opportunity to consult. I’ve also become interested in asking about the recent situation in January and July.

“Things have changed recently, haven’t they?” I want to consult with at least that much awareness and the pretense of understanding. Is this a matter of professional pride?
When I talk about interest rates with my clients, I will be able to speak based on the experience of actually receiving an explanation at the counter. It’s not just knowing the numbers, but the feeling of having heard about those changes as my own business remains.

A bank I usually transact with but have had almost no interaction with. When I had a consultation there that didn’t cost anything, I found both my own anxieties and discoveries I could take back to my work.

For me, who had only been using the ATM for errands, I now have another reason to go to the counter. Even though I only intended to listen, it turned into an unexpectedly pleasant time.

*The conversation has been edited for readability based on the recording of the day, without changing the intent. “Inner voice” is my own internal thoughts.