Buying property in Japan as a foreigner can be a great investment, but securing a mortgage comes with unique challenges. Many banks have strict requirements, and the process can be overwhelming if you’re unfamiliar with the system. This guide will walk you through how to get a mortgage in Japan as a foreigner, covering eligibility, required documents, and key considerations.
1. Can Foreigners Get a Mortgage in Japan?
Yes! Foreigners can apply for a mortgage in Japan, but banks typically prefer borrowers who meet certain conditions:
✅ Have permanent residency (PR) – Not mandatory, but improves approval chances.
✅ Work full-time in Japan with stable income.
✅ Have a valid visa with a long-term stay.
✅ Provide a 20%-35% down payment, as foreign applicants may need a higher deposit.
2. Requirements for a Japanese Mortgage
When applying for a home loan, banks will ask for the following:
- Proof of income (Payslips, tax documents, or employment certificate)
- Residence card and passport
- Bank statements (Usually from a Japanese bank)
- Property details (For pre-approved loans)
- Down payment funds (Some banks require a higher deposit for non-Japanese applicants)
💡 Tip: If you don’t have permanent residency, you might need a co-signer (often a Japanese spouse or employer).
3. Best Banks for Foreigners Seeking a Mortgage
Some banks in Japan are more open to lending to foreigners. Below are a few options:
🏦 Shinsei Bank – Offers English support and flexible loans.
🏦 SMBC (Sumitomo Mitsui Banking Corporation) – Requires strong financial history.
🏦 MUFG Bank – Prefers applicants with PR or Japanese spouses.
🏦 Prestia (formerly Citibank Japan) – Expats may qualify depending on income stability.
4. Mortgage Interest Rates in Japan
Japan has some of the lowest mortgage interest rates in the world. The two main options are:
🔹 Fixed-rate loans – A stable interest rate for a set period (e.g., 10-35 years).
🔹 Variable-rate loans – Interest rates fluctuate based on the market.
💰 Current mortgage rates in Japan range from 0.5% to 1.5%, depending on the bank and loan type.
5. Steps to Apply for a Mortgage in Japan
Step 1: Get Pre-Approval (仮審査 – Kari Shinsa)
Before choosing a property, apply for pre-approval from a bank. This confirms how much you can borrow.
Step 2: Choose a Property
Find a suitable home and get an appraisal.
Step 3: Submit a Formal Mortgage Application (本審査 – Hon Shinsa)
Provide all required documents and await final approval.
Step 4: Sign the Loan Agreement & Make the Down Payment
Once approved, finalize the contract and transfer funds.
Step 5: Property Registration & Loan Disbursement
Your property will be registered under your name, and the bank will release the mortgage funds.
Conclusion
Getting a mortgage in Japan as a foreigner is possible, but preparation is key. If you have a stable income, the right visa, and a strong financial record, you can successfully finance your dream home. Need help navigating the process? Contact New Connection today for expert real estate guidance!
