Japanese Yen Home Loan vs Australian Dollar Home Loan - Calculations

Below is a simple caclulator that compares the cost of taking a Japanese yen home loan out with the Tokyo branch of an Australian bank such as ANZ or NAB to the cost of an Australian currency home loan to buy property in Australia. Stamp duty is calculated for property in Queensland where as of January 2010, properties valued at $500,000 or less are exempt from stamp duty.

Cost of Property (AUD)

Exchange Rate (AUD in JPY)

JPY Interest Rate

AUD Interest Rate

Loan Period (Years)

Using a buyers agent

Split Loan (JPY %)

First home owners grant

Loan in Japanese Yen

Total Cost of Property

Cost of property ¥42,900,000
Building/pest inspection ¥46,800
Legal fees ¥117,000
Mortgage registration fee ¥9,688
Transfer fee ¥82,524
Stamp duty on property ¥819,000
Buyers agent fee ¥0
Loan application fee ¥115,000
Total ($565,257) ¥44,090,012

Money Required

Deposit (30% required) ($165,000) ¥12,870,000
Fees ¥1,190,012
First home buyers grant ¥0
Total ($180,257) ¥14,060,012

Amount paid over lifetime of loan

Principle payment JPY (100%) ¥30,030,000
Principle payment AUD (0%) $0
Interest payment JPY ¥10,744,491
Interest payment AUD $0
Total ($522,750) ¥40,774,491

Monthly Repayments

Interest rate 2.15%
Principle payment JPY (100%) ¥83,417
Principle payment AUD (0%) $0
Interest payment JPY ¥29,846
Interest payment AUD $0
Total ($1,452) ¥113,263

Risk - Interest Rates Rise

Interest rate changes to 2.65% ($1,551) ¥121,010
Interest rate changes to 3.15% ($1,654) ¥129,050

Benefits - Interest Rates Drop

Interest rate changes to 1.9% ($1,404) ¥109,501
Interest rate changes to 1.65% ($1,357) ¥105,815

Margin Call Rates

Margin call at 75% of property value with 30% deposit AUD$1 = ¥73
Close out at 80% of property value with 30% deposit AUD$1 = ¥68

Dollar Decreases 10%

Loan increases to ($441,618) ¥30,030,000
30% of value required increases to ($143,846) ¥11,220,000
Monthly repayment adjustments ($1,666) ¥113,263

Dollar Increases 10%

Loan decreases to ($341,250) ¥30,030,000
30% of value required decreases to ($186,154) ¥14,520,000
Monthly repayment adjustments ($1,287) ¥113,263

Loan Spilt JPY (50%) / AUD (50%)

Total Cost of Property

Cost of property ¥42,900,000
Building/pest inspection ¥46,800
Legal fees ¥117,000
Mortgage registration fee ¥9,688
Transfer fee ¥82,524
Stamp duty on property ¥819,000
Buyers agent fee ¥0
Loan application fee ¥115,000
Total ($565,257) ¥44,090,012

Money Required

Deposit (30% required) ($165,000) ¥12,870,000
Fees ¥1,190,012
First home buyers grant ¥0
Total ($180,257) ¥14,060,012

Amount paid over lifetime of loan

Principle payment JPY (50%) ¥15,015,000
Principle payment AUD (50%) $192,500
Interest payment JPY ¥5,372,425
Interest payment AUD $254,578
Total ($708,455) ¥55,259,509

Monthly Repayments

Interest rate JPY: 2.15% | AUD: 6.7%
Principle payment JPY (50%) ¥41,708
Principle payment AUD (50%) $535
Interest payment JPY ¥14,923
Interest payment AUD $707
Total ($1,968) ¥153,519

Risk - Interest Rates Rise

Interest rates rise by 1% ($2,200) ¥171,576
Interest rates rise by 2% ($2,443) ¥190,575

Benefits - Interest Rates Drop

Interest rates drop by 0.5% ($1,857) ¥144,869
Interest rates drop by 1% ($1,750) ¥136,483

Margin Call Rates

Margin call at 75% of property value with 30% deposit AUD$1 = ¥68
Close out at 80% of property value with 30% deposit AUD$1 = ¥61

Loan in Australian Dollars

Total Cost of Property

Cost of property $550,000
Building/pest inspection $600
Legal fees $1,500
Mortgage registration fee $124
Transfer fee $1,058
Stamp duty on property $10,500
Buyers agent fee $0
Loan application fee $700
Total (¥43,975,012) $563,782

Money Required

Deposit (20% required) (¥8,580,000) $110,000
Fees $13,782
First home buyers grant $0
Total (¥9,655,012) $123,782

Amount paid over lifetime of loan

Principle payment JPY (0%) ¥0
Principle payment AUD (100%) $440,000
Interest payment JPY ¥0
Interest payment AUD $582,200
Total (¥79,731,600) $1,022,200

Monthly Repayments

Interest rate 6.7%
Principle payment JPY (0%) ¥0
Principle payment AUD (100%) $1,222
Interest payment JPY ¥0
Interest payment AUD $1,617
Total (¥221,459) $2,839

Risk - Interest Rates Rise

Interest rate changes to 7.7% (¥244,688) $3,137
Interest rate changes to 8.7% (¥268,771) $3,446

Benefits - Interest Rates Drop

Interest rate changes to 5.7% (¥199,193) $2,554
Interest rate changes to 4.7% (¥177,996) $2,282