Japan launches 'Flat 35 Child-rearing Plus' — interest rate reductions based on the number of children, for loans disbursed from 13 February 2024
Source material is a Japanese government announcement (in Japanese); this page is a summary.
The Japan Housing Finance Agency began applying 'Flat 35 Child-rearing Plus' to loans disbursed from 13 February Reiwa 6 (2024), so child-rearing households and young couple households can get a reduced interest rate on the fixed-rate Flat 35 home loan according to the number of children and similar factors.
Key facts
| Name of the scheme | 【フラット35】子育てプラス (Flat 35 Child-rearing Plus) |
|---|---|
| Operating body | Japan Housing Finance Agency (住宅金融支援機構), an incorporated administrative agency |
| Application starts | Loans disbursed from 13 February Reiwa 6 (2024) |
| Eligible group 1: child-rearing households | Households with a child at the time of application, where that child is under 18 as of 1 April of the application year |
| Eligible group 2: young couple households | Households that are a married couple at the time of application, where one spouse is under 40 as of 1 April of the application year |
| Size of the rate reduction | Expanded from a previous maximum of 0.5% a year to a maximum of 1% a year |
| Example of use (first 5 years) | Rate reductions — young couple or 1 child: 0.25% / 2 children: 0.5% / 3 children: 0.75% / 4 children: 1.0% |
| Combining | Can be combined with other rate-reduction options such as Flat 35S |
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The Japan Housing Finance Agency (住宅金融支援機構), an incorporated administrative agency, started applying 'Flat 35 Child-rearing Plus' (【フラット35】子育てプラス), which cuts the interest rate according to the number of children, to loans disbursed from 13 February Reiwa 6 (2024) under Flat 35 (フラット35), its fixed-rate home loan for terms of up to 35 years. The reduction applies nationwide at a uniform level to child-rearing households and young couple households according to the number of children and similar factors, and can be combined with other rate-reduction options such as Flat 35S. The maximum reduction was expanded from 0.5% a year to 1% a year.
Background — why this change
Following the enactment of the Reiwa 5 (fiscal 2023) supplementary budget, it was decided to start applying a scheme that cuts the interest rate according to the number of children. The agency supports the spread of high-quality housing that meets set standards, including energy-efficiency performance, through Flat 35 and other means, and said it will continue to contribute to a safe and comfortable home life for a wide range of households, including child-rearing households.
Summaries below are factual notes based on government announcements and primary sources — not evaluations or opinions.
Summaries reflect national-level programs. Municipal (city/ward/town) programs may differ — confirm with the official desk before applying.
FAQ
When does it apply from?
It applies to loans disbursed from 13 February Reiwa 6 (2024).
Who is eligible?
Child-rearing households (a child at the time of application who is under 18 as of 1 April of the application year) and young couple households (a married couple at the time of application where one spouse is under 40 as of 1 April of the application year).
How much is the interest rate reduced?
The reduction depends on the number of children and similar factors. As an example of use, a young couple or a household with 1 child gets a reduction of 0.25% for the first 5 years, 2 children 0.5%, 3 children 0.75% and 4 children 1.0%. The upper limit on the reduction was expanded from a previous maximum of 0.5% a year to a maximum of 1% a year, and it can be combined with other rate-reduction options such as Flat 35S. Check the official guidance for the exact conditions.