Can I Get a Mortgage in Japan as a Foreigner?

The short answer?

Usually not. 😓 But let’s break it down.

Buying a home in Japan as a foreigner is 100% legal. In fact, you don’t even need a visa to purchase property. But financing that purchase through a Japanese mortgage lender? That’s where things get tricky.

For most non-residents or recent arrivals, the answer is: no, you likely cannot get a mortgage in Japan. If you don’t have permanent residency, a long credit history in Japan, a steady income in Japan, and fluent Japanese language skills, most banks will see your application as too risky.

But let’s dig into why that is, what the rare exceptions look like, and what options you do have.

🧳 Why It’s So Hard for Foreigners to Get a Japanese Mortgage

Japanese banks are cautious by nature, and their lending systems are built with long-term domestic residents in mind. Here are the major hurdles you’ll face:

• 📅 Visa Status: Tourist or short-term work visa? Forget it. Most Japanese lenders require a permanent residency visa or at least a spouse visa.

• ⏳ Length of Residency: Many banks want to see 3+ years of living and working in Japan before they’ll consider lending.

• 🌐 Language Barrier: The mortgage process is conducted almost entirely in Japanese. Some banks offer bilingual service, but they often come with higher fees or stricter terms.

• 💳 Credit History: A solid Japanese credit history (not just international) is usually required. That means Japanese credit cards, phone plans, and loans paid off on time, for two years at the very least.

• 🚗 Employment & Income: Banks look for long-term employment with a Japanese company and annual income above ¥5 million (~USD $32,000), though requirements vary.

• 🤝 Guarantor or Collateral: Without a Japanese spouse, you may need a guarantor who is a citizen or permanent resident.

• 📈 Loan-to-Value Ratio: Banks may lend a smaller portion of the purchase price (say, 50-70%) to foreigners. You’ll need a large down payment.

🔍 Who Might Qualify for a Mortgage in Japan?

There are exceptions, but they’re rare. Here’s who might stand a chance:

• 👨‍💼 Long-term resident with a stable job in Japan

• 👥 Married to a Japanese citizen

• 🤞 Holding permanent residency

• 💰 Earning a high income (especially over ¥10 million/year)

• 🧲 Fluent in Japanese and comfortable navigating Japanese bureaucracy

• 🤟 Willing and able to put down 30-50% of the purchase price

Even if you tick all these boxes, approval isn’t guaranteed. Each bank has its own rules, and they change often.

🏛️ Japanese Banks That Might Lend to Foreigners

If you’re determined to try, here are a few banks that have (sometimes) worked with foreign applicants:

• SMBC Trust Bank PRESTIA: Offers bilingual support, but requirements are strict and rates may include a "foreigner premium."

• Suruga Bank: Known to be a bit more flexible, especially with higher income or Japanese spouse.

• Tokyo Star Bank: Has English documentation and support.

Each of these still typically requires residency, income in Japan, and a decent down payment.

🧼 What If I Don’t Live in Japan?

If you’re trying to finance a property from abroad, especially something like a countryside akiya or fixer-upper, Japanese banks aren’t going to lend to you. Period.

However, some international banks have created financing products specifically for offshore investors, usually with high minimums and strict limitations:

Banks That May Lend to Non-Residents:

• UOB (Singapore): Up to 70% financing for investment properties in Japan. No residency required, but minimum loan of S$200,000.

• Bank of China: Offers loans case-by-case, mostly to Chinese nationals.

• OCBC (Singapore): Loans for new builds in Tokyo only; minimum ¥25 million.

• Orix (Hong Kong): Loans for Hong Kongers only, focused on Greater Tokyo.

These options are targeted at high-net-worth investors and not generally viable for someone hoping to buy a small countryside home or renovate an akiya.

💳 So How Do Foreigners Actually Buy Property in Japan?

Easy: with cash.

Most of our clients buy homes outright, without financing. It’s simpler, faster, and avoids the long-term risk of currency fluctuations or interest rate changes.

Common Strategies:

• 💵 Cash Purchases: Especially for older, rural, or low-priced properties.

• 🌍 Financing in Your Home Country: Some buyers tap into home equity loans or lines of credit overseas.

• 🪜 Save + Wait: If you’re planning a future move to Japan, you might focus on establishing residency and credit first, then apply for a mortgage down the line.

✉️ Final Word: Stay Grounded, Stay Smart

If you’re not in a position to buy in cash and you don’t already live in Japan with a strong financial track record, a mortgage probably isn’t realistic.

And that’s okay. Jumping into a major purchase overseas without financing, support, or a buffer can backfire. Take your time, make a plan, and explore other paths to property ownership that make sense for your situation.

When the time is right, we’ll be here to help. 

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