Is the 3.81% Flat 35 interest rate 'down' or 'high'? Thoughts from a former landlord in Tokushima on property income and expenditure

The most common interest rate for Flat 35 in November 2026 was 3.81% per annum.
It has decreased from the previous month’s 3.83%.
Even so, the 3% level remains high.

‘Decreased’ and ‘high’ are not contradictory.
This is because the direction and the level are separate matters.

It is a fact that it decreased. However, the margin is only 0.02 percentage points.

The most common interest rate in October 2026 was 3.83% per annum.
This applies to conditions with a loan term of 21 to 35 years, a loan-to-value ratio of 90% or less, and the inclusion of the new organization’s group credit life insurance.

In November, it was 3.81%.
It is a fact that it decreased.
However, the margin is only 0.02 percentage points.

Looking only at headlines about ‘interest rate declines’ makes it feel like the atmosphere has changed significantly.
The actual numbers show a movement that is almost flat.

The level is in the 3% range. What you should look at is not the monthly fluctuation.

Flat 35 interest rates are reviewed every month.
What is applied is not the interest rate at the time of application.
It is the interest rate at the time the funds are received.

If the month changes before or after the application, the applied interest rate also changes.
Therefore, rather than following small monthly fluctuations, looking at what the current level is will prevent you from making mistakes in judgment.

Landlords look at interest rates based on income and expenditure, not feelings.

I used to be a landlord in Tokushima.
When considering a loan, I never took interest rate news based on my feelings.

What I looked at was income and expenditure.
Whether there would be anything left over after subtracting repayments and expenses from rental income.

Even if you get happy or sad about the direction of interest rates, your income and expenditure will not change by even one yen.

Interest rates are not something to read into, but something to apply to your own income and expenditure.

The higher the interest rate, the more effective the difference in controllable expenses becomes.

You cannot choose interest rates yourself.
However, among the expenses paid for purchasing or renting a home, there are some that you can choose to keep down.
That is the brokerage fee.

I am writing an article introducing a real estate agency I used previously for those thinking about buying, selling, or renting properties in Tokyo.
The conditions are half the maximum brokerage fee for sales and 30% off for rentals.

There are situations where the difference in fees has a greater impact on household finances than chasing a 0.02 percentage point change in interest rates.
The introductory article is here.

Read the direction and the level separately.

‘Down’ is a matter of direction.
‘High’ is a matter of level.

When considering a mortgage, do not be reassured by the direction of the headline.
Read the current interest rate by applying it to your own income and expenditure.
That is how I read it as a former landlord.

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