When comparing flat-fee (fixed-amount) loans, you must include the increase in total repayments caused by any interest rate surcharge in the comparison. For percentage-based fees, if the loan amount is the same at ¥40 million, there is a ¥440,000 difference in upfront fees between institutions charging 1.1% (tax included) and those charging 2.2% (tax included). For flat-fee loans, comparisons must factor in the additional repayment burden resulting from the interest rate increase applied on top of the flat fee. For example, let us compare two products: Product A: flat fee of ¥550,000 with an annual interest rate increase of 0.1% Product B: flat fee of ¥550,000 with an annual interest rate increase of 0.2% Assuming a loan amount of ¥40 million and a loan term of 35 years, the total loan handling cost is approximately ¥921,000 for Product A and ¥1,787,000 for Product B.Although the flat fee itself is the same, the total cost including the interest surcharge is about ¥866,000 higher for Product B. 3. Group Credit Life Insurance (Danshin) With guarantee-type Flat 35, group credit life insurance (danshin) is provided by the lending financial institution, so coverage varies by institution. Depending on the coverage, an interest rate surcharge may apply, or a separate insurance premium rider may be required, both of which can affect the total repayment amount. Some institutions and product plans require enrollment in group credit life insurance. If a borrower is unable to enroll due to health or other reasons, they may not be eligible for that loan. In contrast, with purchase-type Flat 35, enrollment in group credit life insurance is optional, and the insurance products offered are the “New Group Credit” or “New Group Credit with Coverage for Three Major Diseases” provided by the Japan Housing Finance Agency. As a result, there is no difference among financial institutions. 4. Total Repayment Burden Ratio (Repayment Ratio) The total repayment burden ratio is the percentage of annual income used to repay Flat 35 and other loans combined. If this ratio exceeds the standard, Flat 35 cannot be used. For purchase-type Flat 35, the standards are uniform across all financial institutions: Annual income under ¥4 million: repayment ratio must be under 30% Annual income of ¥4 million or more: repayment ratio must be under 35% For guarantee-type Flat 35, some financial institutions impose stricter requirements. If the loan-to-value ratio (the Flat 35 loan amount divided by the construction or purchase price) exceeds 80%—meaning the borrower provides less than 20% in personal funds—the required repayment ratio may be capped at 20% or less. For example, a borrower with an annual income of ¥5 million and no other debts could borrow up to approximately ¥45.4 million at an annual interest rate of 1.8% over 35 years if the repayment ratio limit is 35%. However, if the repayment ratio limit is 20%, the maximum borrowing amount drops to approximately ¥26 million.