Getting a Mortgage in Japan as a Foreign Resident

Buying a home in Japan is an achievable goal for foreign residents — but navigating the mortgage landscape requires preparation, the right lender, and a clear understanding of what banks expect from non-Japanese applicants. This guide walks you through everything you need to know about getting a mortgage in Japan as a foreigner, from eligibility requirements and the best banks to interest rates and the application process.

Whether you hold permanent residency or are still on a work visa, this comprehensive guide covers your options, the documentation you'll need, and practical tips to maximize your approval chances.

Can Foreigners Get a Mortgage in Japan?

The short answer is yes — foreigners can obtain mortgages in Japan. There are no legal restrictions on foreign nationals purchasing property in Japan or applying for home loans. However, eligibility varies significantly depending on your residency status, and not all banks are willing to lend to non-permanent residents.

Here's the key distinction:

• Permanent residents (PR holders): Can access mortgages at nearly the same terms as Japanese citizens, including major city banks and online lenders with the lowest rates.
• Long-term visa holders (non-PR): Face stricter requirements — higher down payments, fewer lender options, and generally higher interest rates. However, specialist banks do cater to this group.

Foreign investors now account for around 27% of property transactions nationwide and up to 40% of new apartment sales in central Tokyo (Mitsubishi UFJ Trust & Banking, 2025 survey). Japan's property market is increasingly international, and the banking sector is slowly adapting.

For a deeper understanding of finding housing in Japan or the overall property buying process, check our related guides.

Key Eligibility Requirements for Foreign Borrowers

Before approaching any bank, make sure you meet the basic eligibility criteria. Requirements differ between lenders, but here are the most common conditions:

Residency and Visa Status

Most mainstream Japanese banks require permanent residency for a standard mortgage. However, several foreigner-friendly banks will lend to applicants on long-term visas (e.g., Engineer/Specialist in Humanities, Spouse of Japanese national, Highly Skilled Professional).

If you don't have PR, you'll typically need:

• A valid long-term residence visa (usually 1 year or more remaining)
• 3+ years of continuous employment in Japan
• A Japanese spouse or permanent resident co-applicant (for some banks)

Income Requirements

• Minimum annual income: ¥2–5 million depending on the lender
• Stable employment history preferred (2–3 years minimum with current employer)
• Self-employed applicants face additional scrutiny and must provide tax returns

Down Payment

One of the biggest differences for foreigners vs. Japanese nationals:

• PR holders: Typically 20% down payment required
• Non-PR foreigners: Banks often require 30–50% down payment

The higher down payment reduces bank risk and demonstrates financial commitment to remaining in Japan long-term.

Age Requirements

Most banks set application age limits between 20–65 at time of application, with the final loan repayment due before age 75–80.

Other Requirements

• Enrollment in group life insurance (required by virtually all lenders)
• Registered address in Japan
• Ability to communicate in Japanese (varies by bank — some offer English support)

Best Banks for Foreigners Getting a Mortgage in Japan

Not all banks are equally open to foreign borrowers. Here are the top lenders known for working with non-Japanese applicants:

SMBC Trust Bank (Prestia)

Prestia is widely considered the most foreigner-friendly major bank in Japan. It does not require permanent residency and has bilingual staff. Key terms:

• Variable rate: ~1.1%
• 10-year fixed rate: ~1.8%
• Minimum annual income: ¥5 million
• Maximum loan term: 35 years
• Strong English-language support throughout the process

Suruga Bank

Suruga offers flexible mortgage programs specifically for non-PR residents, with no guarantor requirement. Their rates run slightly higher:

• Variable rate: 1.6–2.8%
• Minimum income: ¥2 million after tax
• Employment requirement: 3+ years
• Process conducted primarily in Japanese

SBI Shinsei Bank

Shinsei Bank is another solid option for non-PR foreign residents:

• Variable rate: 1.9–3.2%
• Minimum income: ¥3 million annually
• Employment: 2+ years continuous
• 35-year maximum term
• Bilingual support available

For additional context on managing your finances in Japan, see our banking and finance guide.

Current Mortgage Interest Rates in Japan

Japan is known for its historically low interest rates. As of 2025–2026:

• Variable rate mortgages: 0.2–1.6% (with the lowest for PR holders at major banks)
• Fixed rate (10 years): ~1.8–2.5%
• Fixed rate (35 years / Flat 35): ~1.9–3.2%

Approximately 80% of Japanese borrowers choose variable-rate mortgages, drawn by the lower monthly payments. However, with the Bank of Japan gradually raising rates after years of near-zero rates, the risk of rate increases is now more relevant than it has been in decades. Consider fixed-rate options if you value payment stability.

For foreigners without PR using specialist banks, expect rates 0.5–1.5% higher than the headline rates offered to Japanese nationals.

The Mortgage Application Process Step by Step

Getting a mortgage in Japan follows a structured process. Here's what to expect:

Step 1: Determine Your Budget and Eligibility (1–2 weeks)

Before house-hunting, consult with a bank or mortgage broker to understand how much you can borrow. Request a pre-qualification (事前審査, jizen shinsa) to get an informal indication of loan size.

Step 2: Property Search and Offer (1–3 months)

Search for properties using platforms like SUUMO, HOMES, or At Home. Use a real estate agent experienced with foreign buyers. Once you find a property, submit an offer.

Step 3: Formal Loan Application (1–2 weeks)

Submit your formal application (本申し込み, hon moshikomi) with supporting documents. Most banks require:

• Residence card (在留カード)
• Passport
• Income proof (pay stubs, annual income certificate)
• Employment certificate
• Tax returns (past 2–3 years)
• Bank statements
• Property purchase agreement
• Property appraisal report

Step 4: Property Disclosure Review (1 day)

Your real estate agent will walk you through the property disclosure document (重要事項説明書, juyo jiko setsumeisho). This is a legal requirement and must be reviewed with a licensed agent.

Step 5: Sales Contract and Deposit (1 day)

Sign the sales contract and pay a deposit (usually 5–10% of purchase price). After this point, withdrawing from the purchase may result in forfeiting your deposit.

Step 6: Loan Approval and Execution (2–4 weeks)

The bank conducts a final credit check, property appraisal, and underwriting review. Once approved, you sign the loan agreement.

Step 7: Final Payment and Key Transfer (1 day)

The bank wires the remaining funds directly to the seller. Property registration is updated, and you receive the keys.

Total timeline: approximately 4–8 weeks from formal application to closing.

Important legal note: Within 20 days of signing the sales contract, foreign buyers must file required notifications under Japan's Foreign Exchange and Foreign Trade Act. Failure to do so can result in penalties.

Additional Costs to Budget For

The property price is just the beginning. Budget approximately 10% of the purchase price for additional fees:

For detailed information on property taxes once you own, see our Japan property taxes guide. Also understand the cost of living in Japan to plan your monthly budget as a homeowner.

Tips to Improve Your Mortgage Approval Chances

Getting approved as a foreign national in Japan is very possible with the right preparation:

1. Build your Japanese credit history: Have a Japanese bank account and credit card in good standing for at least 1–2 years before applying.
2. Maintain stable employment: Banks want to see 2–3+ years with the same employer. Job-hopping immediately before applying is a red flag.
3. Save a larger down payment: The more you put down (especially 30–40%), the better your approval odds as a non-PR applicant.
4. Work with a bilingual mortgage broker: Brokers who specialize in foreigner mortgages can match you with the right lender and help navigate the Japanese paperwork.
5. Apply for permanent residency first if possible: PR dramatically expands your options and reduces the interest rate and down payment you'll face.
6. Keep your visa renewal on track: Banks are concerned about long-term residency. A visa with several years remaining and a good renewal history helps.
7. Learn enough Japanese or bring support: Even at English-friendly banks, some documents and legal explanations are in Japanese.

For more on permanent residency applications, check out our Japan visa and immigration guide.

Is Buying a Home in Japan Worth It for Foreigners?

Japan's property market offers some unique advantages for foreign buyers:

• Low interest rates compared to most other developed countries
• Affordable prices in many regional cities (older homes can be purchased for surprisingly low prices)
• No restrictions on foreign ownership — you can buy land and buildings outright
• Potential rental income if you move back to your home country

However, there are also considerations: Japanese properties depreciate over time (unlike many Western markets), older wooden buildings lose value quickly, and selling as a foreigner involves its own complexities. Read our property management guide and rental income tax guide if you're considering investment properties.

External Resources for More Information

For comprehensive property and mortgage guides, these resources offer detailed information:

• Living in Nihon: Buying Property & Mortgage Guide for Foreigners in Japan — covers the complete property acquisition and home loan process
• For Work in Japan: Housing and Living Infrastructure Guide — practical housing setup information for foreign workers
• Ittenshoku: Career and Relocation Support for Foreigners — support for foreigners relocating in Japan
• Tokyo Portfolio: Housing Loans for Foreigners Ultimate Guide — detailed breakdown of foreigner-friendly lenders
• Real Estate Japan: Basic Requirements for Mortgage as a Foreigner — lender comparison with specific requirements

Conclusion

Getting a mortgage in Japan as a foreign resident is entirely possible, but it requires more planning and the right lender compared to Japanese nationals. The key factors that determine your options are your residency status, income level, and down payment capacity.

If you hold permanent residency, you can access almost all the same mortgage products as Japanese citizens. If you're on a long-term work visa, specialist banks like SMBC Prestia, Suruga Bank, and SBI Shinsei Bank are your best options — they welcome foreign applicants and some even offer English-language support.

Start by consulting with a bilingual mortgage broker or speaking directly with Prestia or Shinsei Bank to understand your exact eligibility. With proper preparation and the right guidance, owning property in Japan as a foreign resident is an achievable and potentially rewarding goal.

Also explore our related guides: how to buy property in Japan as a foreigner, Japan property taxes explained, and our full banking and finance guide for foreigners in Japan.