In Japan, most banks will not lend housing loans to foreigners without a Permanent Residence Visa, as it is understandably a big risk for financial institutions to do so. However, there is still hope for those who hold a certain visa type in Japan and also pass the requirements given by the banks. In this article, we will list all the Japanese and overseas banks which lend to non-Japanese and their requirements.
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Below are the most common requirements needed for non-Japanese who do not hold a Permanent Residency Visa.
・Must have signs of staying long-term in Japan such as having a Japanese spouse (Having a Japanese spouse shows the bank that there is a high possibility you will be staying long-term in Japan. Another benefit of this is that you may have your Japanese spouse become a guarantor which can make receiving housing loans from banks an easier task)
・Japanese language ability to read and write personal information on documents
・Is working at a listed or a major company (This can be one way to show the bank that the applicant is financially steady)
・Currently employed and have worked for over 2 years at current company at the time of applying
There are many requirements but the most important one would be to hold a long-term Japanese visa. Non-Japanese who do not hold a long-term visa, it will be merely impossible to get a loan in Japan.
Here are the Japanese and foreign banks that give housing loans to non-Japanese without a Permanent Resident VIsa and the requirements.
*Note: Permanent Residence Visa will be referred as PR from below.
10 Reasons You Should Buy Property in Tokyo
1. Japanese Banks
Banks | Floating Rates | Fixed Rates | Loan Limit | Requirements |
| The Bank of Tokyo-Mitsubishi UFJ | 2.475% | 3 Years: 3.000% 5 Years: 3.100% 10 Years: 3.250% | 100,000,000 JPY | -Have funds of at least 20% of the property price -Signs of staying long-term in Japan (Japanese spouse or lived in Japan for over 5 years) -Currently working at a Japanese company for over 3 years |
| Mizuho Bank | 2.475% | 3 Years: 2.550% 5 Years: 2.550% 10 Years: 2.700% | 100,000,000 JPY | -Signs of staying long-term in Japan (Japanese spouse or have children attending school in Japan, etc.) |
| Sumitomo Mitsui Banking Corporation | 2.475% | 3 Years: 2.850% 5 Years: 3.000% 10 Years: 3.250% | 100,000,000 JPY | Signs of staying long-term in Japan |
| Mitsui Sumitomo Trust and Finance | Applicants under 56 years old: 3.900%~4.400% Applicants over 56 years old: 4.40%~5.40% | None | 300,000,000 JPY | Requires Japanese language ability (read and write) |
| Shinsei Bank | 0.600% | 3 Years: 0.850% 5 Years: 0.850% 10 Years: 1.000% | 100,000,000 JPY | -Residing in Japan -Working for over 2 years at current company -Annual salary of over 3,000,000 JPY -Employees need to have their business running for over 2 years and have an annual salary of over 3,000,000 JPY (The amount after paying company expenses) -Applicants must be over 20 years old and under 65 years old -Note that Shinsei Bank does not do pre-applications |
2. Foreign Banks in Japan
| Banks | Floating Rates | Fixed Rates | Loan Limit | Requirements |
| Bank of China | 3 Years 2.300%~2.500% | None | -No need for a PR -Residing in Japan -Annual salary of over 3,000,000 JPY -May borrow up to 70% of the property price (50% for investment loan) -Applicants with savings in a Bank of China account in China may borrow up to 80% -Must be a property newer than 1982 -Maximum borrowing period: 25 years | |
| Bank of Taiwan | 2.800%~2.900% | None | 100,000,000 JPY | -May borrow up to 70% of the property price -Must be a property over 30,000,000 JPY |
| Shinhan Bank Japan | 2.875%~3.375% | None | 100,000,000 JPY | -Signs of settling long-term in Japan |
4 Banks that Offer Home Loans in Japan to Non-Residents
In conclusion, the 3 most important things for non-Japanese who do not hold a Japanse Residence Visa to have are:
2. Signs of settling in Japan for long-term
3. Has been working at current company in Japan for at least 2 years
Note that some banks do not have fixed rates and no pre-applications. If you have any questions on the different interest rates and what pre-applications are, it will be very beneficial to inquire a bilingual realtor for guidance.
Click here for more detailed information on housing loans.
Beyond Borders Editorial Team: Mori Nishimura
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