【Breaking News】 "Flat 35 interest rates have reached 3.21%"
People who saw the news and panicked. People who thought, "It's a loss to borrow at a fixed rate now." People who resolved, "Then I'll work hard on early repayment."
Everyone, please wait a moment.
That judgment is the kind you'll regret 5 years from now, thinking, "I should have borrowed then" or "I shouldn't have made that early repayment."
The reason is simple.
We are living in an era where "inflation erases debt."
**
To put it bluntly, rushing into early repayment at this timing is stupid.
Today, I'll reveal the whole mechanism at a level even a middle schooler can understand.
If you read to the end, you'll be able to use a mortgage not as "debt," but as the "strongest weapon in the era of inflation."
■ 1. First, let's organize the news at a middle school level
In June, the Japan Housing Finance Agency announced the minimum interest rate for Flat 35.
The numbers are as follows:
3.21% (for repayment periods of 21 to 35 years).
This is the first time it has exceeded 3% since 2017.
Moreover, it has risen for 11 consecutive months.
The gap with variable interest rates, which are around 1%, has widened to over 2%.
According to a financial planner's calculation, for a 40 million yen loan with a 35-year repayment period, it looks like this:
Total repayment for variable interest: approx. 47 million yen. Total repayment for Flat 35: approx. 64 million yen.
The difference is over 17 million yen.
For those who thought, "See, borrowing at a fixed rate is a 17 million yen loss."
If you stop thinking here, you will suffer a huge loss in the long run.
Why?
Because that 17 million yen figure is a calculation in a "world where inflation does not occur."
Reality is different.
■ 2. Is "losing 17 million yen" true? The trap of numbers
In the first place, is 17 million yen 35 years from now the same value as 17 million yen today?
The answer is no.
For example, let's look at the price of 5kg of rice.
1968: approx. 700 yen 2025: approx. 4,500 yen
That's about a 6.4x increase in 57 years.
In other words, 1 million yen in the past is only worth about 150,000 yen today.
Conversely, how much will 1 million yen today be worth in 35 years?
If prices double, the value will be equivalent to half, or 500,000 yen.
If they triple, it will be equivalent to about 330,000 yen.
In other words, the 17 million yen difference, when converted back to the price levels 35 years from now, becomes much smaller.
In my estimation, the perceived value will be less than half.
This is the first trap of the surface numbers.
■ 3. My premise: Nikkei Average at 1 million yen, inflation continues until 2050
I've been saying this for a long time.
"The Nikkei Average will reach 1 million yen in 2050."
This can be proven by past cycles.
1st time: 1878 (136 yen) → 1920 (549 yen, or 40,406 yen after stock splits), approx. 297x, 42 years. 2nd time: 1949 (172 yen) → 1989 (38,915 yen), approx. 225x, 40 years. 3rd time (Current): Started in 2008 at 6,994 yen, now over 50,000 yen.
Applying the same "40 years, 225x" as the second cycle, it looks like this:
6,994 yen × 225 = 1.57 million yen.
I say "1 million yen" to be safe.
The true nature of this rise is not the ability of shareholders.
It's inflation.
In a capitalist society, inflation occurs.
Prices rise Corporate sales rise Profits rise Stock prices rise Nikkei Average rises
This cycle continues to turn.
And now, we are at the "beginning of the third cycle."
The premise is that the "era of continuing inflation" will last until 2050.
I have an article that describes this in more detail, so please read it.
■ 4. The mechanism of how inflation "erases" debt
This is the main topic today.
Debt itself is fixed in amount.
For example, if you borrow 40 million yen, the debt remains 40 million yen on a principal basis 35 years later.
However, prices will go up.
In 35 years, if prices have doubled.
That 40 million yen at that time will feel like 20 million yen in today's terms.
In other words, the "real value" of the debt is halved.
This is the mechanism of "inflation erasing debt."
Let's think with a concrete example.
There are people in my parents' generation who bought a house for 30 million yen at the end of the Showa era.
30 million yen back then was a huge sum, close to 100 million yen in today's terms.
But looking back now, it becomes a joke: "That 30 million back then was cheap."
Looking at more familiar examples, the power of inflation is even easier to understand.
・ One bowl of Ramen
1965 (Showa 40): approx. 100 yen.
2025: approx. 1,200 yen.
About 12x in 60 years.
・ One Postcard
1965: 5 yen.
2025: 85 yen.
17x in 60 years.
・ Vending Machine Cola
1985: 100 yen.
2025: 180–200 yen.
2x in 40 years.
In our grandparents' era, you could eat ramen with a single 100-yen coin.
Now it's 1,200 yen.
Even for the same "100 yen," the value has become 1/12.
This is the reality of inflation.
In 35 years, we who hold 40 million yen in debt today will say the same thing.
"That 40 million back then was like the price of a bowl of ramen today."
■ 5. Save 2.32 million yen with "Child-rearing Plus," the strongest 5-year combo
If you choose a fixed interest rate here, there is a system you should absolutely use.
"Child-rearing Plus"
A preferential plan for child-rearing households.
For the first 5 years, a maximum interest rate reduction of 1% is possible.
According to a financial planner's calculation, if you meet the requirements, you can save 2.32 million yen in total repayments.
2.32 million yen is an amount that could take a family around the world.
The government has prepared this as "child-rearing support."
There's no reason not to use it.
The main requirements for Child-rearing Plus are simple:
1. The applicant or spouse is under 40 at the time of borrowing 2. There is a child under 18, or a family member is pregnant at the time of borrowing 3. Certain interest rate reduction conditions are met
For those who qualify, this alone saves 2.32 million yen.
You can significantly offset the high total repayment amount, which was the "biggest weakness" of fixed interest rates, in the first 5 years.
People who say "fixed is a loss" without knowing this are truly losing out.
■ 6. Danshin is effectively "Life Insurance," the hidden value of fixed rates
There is another hidden value in mortgages.
Group Credit Life Insurance, known as Danshin.
It's a system where if the borrower dies, the mortgage balance is cleared.
When you think of this as life insurance, it's incredibly powerful.
For example, suppose someone who borrowed 40 million yen dies in an accident 5 years later.
The remaining debt of about 35 million yen disappears entirely.
In other words, a "tangible asset (house)" worth 35 million yen remains for the family.
How much would it cost to take out a separate 35 million yen life insurance policy?
For a 40-year-old man, 20,000 to 40,000 yen per month Over 35 years, that's 8.4 to 16.8 million yen in premiums
Danshin is included within the mortgage interest rate.
In other words, just by taking out a mortgage, you've finished "buying a house" and "entering life insurance" at the same time.
This is also a value that isn't visible with the simple view that "fixed interest is high."
■ 7. The pitfalls of variable interest rates: The 5-year rule and 125% rule
For those who thought, "No, variable is cheaper, so variable is fine."
There are two traps in variable interest rates.
1. The 5-year rule
A mechanism where even if interest rates rise, the monthly repayment amount does not change for 5 years.
It's easy to think, "I'm safe even if rates rise."
But in reality, the ratio of "interest" and "principal" within the monthly repayment changes automatically.
Interest increases, and the principal doesn't decrease at all.
In the worst-case scenario, "unpaid interest" occurs where the principal barely decreases even after repayment.
2. The 125% rule
After the 5-year rule, the repayment amount is reviewed.
However, the increase is capped at 125% of the previous repayment amount.
This also looks like "peace of mind" at first glance.
But conversely, any interest rate increase exceeding the 25% rise is settled in a lump sum at the final payment.
You might suddenly be hit with a demand to "pay several million yen" at the very end.
Variable rates are only beneficial if you assume today's low rates will continue for 35 years.
In an era of advancing inflation, the probability of them rising in 5 or 10 years is high.
At that time, the traps of these rules will kick in all at once.
■ 8. Why early repayment is stupid: 3 reasons
To those who have read this far and decided to "borrow at a fixed rate."
There is one more rule I want you to absolutely follow.
Do not do early repayments.
For those who think "it's better to pay off debt quickly," that is an idea from the deflationary era.
In the inflationary era, early repayment is a truly stupid choice.
There are 3 reasons:
1. Inflation automatically makes the debt smaller
The principal of the debt is fixed.
Prices rise.
In other words, the longer you wait, the more the real value of the debt decreases.
It's a state where "inflation pays it back" just by leaving it alone.
Yet, cutting your own cash to pay it back is a double punch of loss.
2. If you keep cash on hand, you can invest during market crashes
The 1 million yen you put toward early repayment will never come back.
But if you keep it, you can enter the market when stocks crash, thinking "this is the time to buy."
1 million yen invested at a buying opportunity can multiply several times in 5 to 10 years.
3. It serves as bridge funding for sudden medical, educational, or career change costs
You never know what will happen in life.
If you've made early repayments and have no cash on hand, you'll be stuck when sudden medical expenses or a drop in income during a career change occurs.
Always keep plenty of cash as "insurance."
I understand the feeling of wanting to pay off debt quickly.
But we live in an era where that backfires.
In an inflationary era, the correct answer is to pay back debt "slowly."
In the meantime, use the cash on hand for asset management or product sales (reselling).
This is how to use money in the inflationary era.
■ 9. Something more important than the interest gap: Where to use your brain's resources
I'd like to take a step back and think.
The difference between 3.21% fixed and 1% variable is about 2% A difference of 17 million yen over 35 years
It's certainly a large number.
But can't the brain resources you're using to "worry" about that difference be used more effectively?
In my experience, the more someone worries about mortgage rates all day, the less their income grows.
Conversely, those who switch to thinking, "Don't worry about the interest rate, let's use that brainpower to think of ways to earn," are the ones whose lives change.
For example, if you create a monthly reselling income of 30,000 yen, that's 360,000 yen a year.
That's 12.6 million yen over 35 years.
A 17 million yen difference is an amount you can recover in 5 years of reselling.
Moreover, reselling doesn't end once you start.
You can keep earning.
Your assets will grow compoundingly.
Rather than struggling with documents for months to reduce the interest rate by 1%, it's overwhelmingly faster to start reselling in that time.
This is my honest opinion.
■ 10. The three pillars of how I make 100,000 to 200,000 yen a month in reselling
So, what kind of reselling is good?
Here are the three pillars I use:
1. iPhone
Profit of around 20,000 yen per unit.
Demand is always there.
The knowledge barrier is low, making it easy for beginners to start.
*As of June 1st, profits have decreased to this level. I want you to earn a ton with the next iPhone 18. That's why I want you to input the "method" now and acquire it as a way to earn money immediately.
2. Pokemon Cards
Just by letting new expansion boxes sit for a bit, you can get over 20,000 yen in profit.
Rare cards can be worth hundreds of thousands of yen.
If you have the stamina and mobility for the information war, you can make hundreds of thousands a month.
3. Rolex
Profits of hundreds of thousands of yen per watch.
"Modern gold bullion" that is strong against yen depreciation and inflation.
It requires capital, but the turnover is fast and capital efficiency is extremely high.
Combined, these three can realistically create an income source of 100,000 to 200,000 yen a month.
Some people might think, "Reselling is a bit..."
But electronics retailers, drugstores, and apparel shops all operate on the business model of "buying low and selling high."
The reselling I do is just scaling that mechanism down to an individual size.
Moreover, inventory risk is almost zero, and the speed to cash is fast.
A monthly mortgage repayment of 100,000 yen is an amount that can be fully covered by reselling.
Thinking that way, the fear of mortgages disappears instantly.
■ 11. The reselling methods are all available in the official LINE rich menu
To those who read this far and thought, "I want to try reselling."
I've summarized the know-how I usually use for iPhones, Pokemon cards, and Rolexes into articles, from introduction to practice.
They are located in the official LINE rich menu.
When you register for the LINE, the rich menu appears, and you can read detailed articles on the three products for free.
This is the rich menu.
You can start with anything.
From iPhones if you have a credit card limit and a little time Pokemon cards if you're aiming for a serious one-shot hit Rolex if you're aiming for long-term profit
The entry point changes depending on the reader's situation.
All articles are based on my past transactions and figures.
When you think "I want to read it" or "I want to try it," feel free to go get them.
■ 12. Giving away the "Mortgage Strategy Roadmap" for free via PDF and official LINE
I'm giving away a secret report, "Mortgage Strategy Roadmap in the Era of Inflation," which summarizes today's content into 3 A4 pages, for free only to those who want it.
The steps to receive it are 3:
1. First, join the Open Chat
URL is here: https://noirstock.com/open
2. Register for the official LINE from the announcement section
When you join, there is a "Guide to official LINE registration" in the announcement section.
Please register for the official LINE from there.
Once registered, you can also read detailed articles on "iPhone Reselling," "Pokemon Card Reselling," and "Rolex Reselling" for free from the rich menu.
3. Send "Mortgage" to the official LINE
With just this, the Mortgage Strategy Roadmap PDF will be sent automatically.
In the Open Chat, I regularly post market views, brand organization, and the latest reselling information.
If you're wondering "whether to borrow a mortgage now" or want to see "how I usually move," please take a look.
■ 13. Finally
To everyone who read this far, thank you very much.
For those who saw the news that mortgage rates exceeded 3% and hurriedly gave up on fixed rates, it's not too late.
And for those who think "I'll do an early repayment because rates are rising," I really want you to stop.
The era we live in is an era where inflation continues.
Inflation will automatically make the debt smaller.
Borrow long-term with a fixed rate, save 2.32 million yen with Child-rearing Plus, utilize Danshin as life insurance, and keep cash on hand.
Do not do early repayments.
This is the correct answer for mortgages in the era of inflation.
And rather than spending time worrying about a 1–2% interest difference, starting reselling in that time will change your life overwhelmingly.
You can receive the PDF by following the steps in Section 12, so if you're interested, please do.
Receive the report here: https://noirstock.com/open
The keyword is "Mortgage".
Thank you for reading to the end!
I would be happy if you could also read this article!
I also write about my crappy half-life living in the underground world lol
References
・Japan Housing Finance Agency (2026-06) "Flat 35 Interest Rate Information"
・Nihon Keizai Shimbun (2026-06) "Flat 35 Interest Rate Rises to 3.21% in June"
・Japan Housing Finance Agency "【Flat 35】 Child-rearing Plus" Official Page
・Japanese Bankers Association "Basic Knowledge of Mortgages: 5-year rule, 125% rule"
・National Tax Agency "Overview of Mortgage Deduction System"
・Ministry of Internal Affairs and Communications Statistics Bureau "Consumer Price Index (CPI) Long-term Time Series Data"
・Ministry of Agriculture, Forestry and Fisheries "Trends in Retail Prices of Rice"
・Ministry of Health, Labour and Welfare "Basic Survey on Wage Structure: Trends in Starting Salaries for University Graduates"
・Noah (@noirinvestor) "Nikkei Stock Average will reach 1 million yen in 2050" 𝕏 Article (2026-04-22)
*This is not a recommendation for specific financial or insurance products. Please make final judgments at your own risk.
