Bonus-Barai: The Risks of Bonus Mortgage Payments in Japan

Note: This content is specific to the Japanese employment system.

In Japan, full-time employees traditionally receive large bonuses twice a year (Summer and Winter). Banks offer a mortgage feature called Bonus-Barai, allowing you to allocate up to 50% of your total loan principal to be paid exclusively during bonus months.

Example:

• Jan-May: Pay ¥80,000.
• June (Bonus): Pay ¥80,000 + ¥300,000.
• Jul-Nov: Pay ¥80,000.
• Dec (Bonus): Pay ¥80,000 + ¥300,000.

The Advantage

It significantly lowers your monthly cash outflow, making expensive homes feel "affordable" on a monthly basis.

The Danger

Bonuses are not guaranteed. In a recession, companies cut bonuses first. If your bonus is cut to zero, the bank still demands that ¥300,000 payment. This is a common cause of mortgage default in Japan.

Recommendation: Avoid Bonus-Barai if possible. Base your affordability on your regular monthly salary alone.

👉 Japanese Mortgage Calculator