As part of our series of posts about real estate loans in Japan, we provide this guide on the topic of banks and financial institutions that offer real estate loans to foreigners in Japan.
In this guide, we introduce details focus on real estate loans available to foreigners in Japan, including both Japanese mortgage loans for foreigners and specific details on real estate investment loans for foreigners in Japan.
Loans to Buy Real Estate for Foreigners in Japan
— Overview of Real Estate Loans for Foreigners in Japan
— Can Foreigners Get a Loan to Buy Property in Japan?
— Mortgage Loans for Foreigners in Japan
— Real Estate Investment Loans in Japan
— Criteria to Get a Real Estate Loan in Japan as a Foreigner
— Local Real Estate Brokers for Foreigners Buying Property in Japan
See more on each of these topics below.
Overview of Real Estate Loans for Foreigners in Japan
Many foreigners that want to buy property in Japan would like a mortgage loan to buy home or a real estate investment loan. It is possible to get a loan to buy property in Japan, and there are several banks that are willing to lend money to foreigners to buy Japanese real estate.
There are financial institutions in Japan that provide loan options for foreign residents, business owners, and international real estate investors. The criteria to get a real estate loan in Japan include factors such as residency status, Japanese language ability, personal income, and location of the property all play an important role in the approval process. There are additional criteria to get a loan to buy investment property in Japan.
Compared to Japanese natives, it can be more difficult for foreign nationals to get a loan in Japan. Most real estate purchase in Japan are paid for with cash.
Can Foreigners Get a Loan to Buy Property in Japan?
Yes, foreigners can get loans to buy property in Japan. The loan approval process for international buyers may depending on visa status in Japan, ability to speak Japanese, personal income, and the location of the property.
For most foreigners, the best place to start looking for a loan to buy Japanese property will be with banks that specifically offer loans to foreigners. While there are local banks and the equivalent of credit unions that offer real estate loans to local Japanese, international buyers will struggle to meet their criteria.
Foreigner-friendly banks are familiar with international customers and non-Japanese applicants. Some banks even provide support for multiple languages (English and Chinese). Some examples of foreigner-friendly banks include Suruga Bank and SBI Shinsei Bank, both of which are known for offering services to international residents in Japan.
While there are banks that provide loans to buy property in Japan, compared to native Japanese borrowers, it is typically much more difficult for foreigners to borrow money to buy Japanese real estate. Most foreign buyers pay cash.
Mortgage Loans for Foreigners in Japan
Foreigners that meet certain criteria can find a loan to buy a home in Japan.
For example: A Singaporean that has permanent residence in Japan, speaks Japanese, works for a well-known Japanese company, has a strong income, and wants to buy a newer condominium (less than 15 years old) in a popular neighborhood in Osaka, may find several Japanese banks willing to offer a Japanese mortgage loan to buy property. A buyer that does not have permeant residency, is not fluent in Japan, has foreign income (or is self employed), or wants to buy older real estate, or in non-central locations will struggle to find loan options.
Most foreigners that buy homes in Japan pay cash.
For more information, see our list of banks that offer residential mortgage loans to foreigners in Japan.
Real Estate Investment Loans in Japan
Foreign-born real estate investors that meet certain criteria can find a loan to buy investment property in Japan.
For example: An real estate investor that lives in Japan, has permanent residency, speaks fluent Japanese, has established a Japanese company to buy the property, and wants to buy a newer property for investment in a central location in a popular neighborhood in Tokyo, may find more banks willing to offer Japanese business loan to buy investment property. If that buyer does not speak Japanese, wants to buy older property, has no established history as a real estate investor in Japan, or wants to buy in less central locations, that investor will struggle to find a loan.
Some banks require borrowers to get Japan-based income through a Japanese company established in Japan when applying for a real estate investment loan.
We provide a list of the best banks that offer foreigners loans to buy investment property in Japan, and some of the specific the criteria required for each bank.
Criteria to Get a Loan in Japan as a Foreigner
All of the banks that offer real estate loans and residential mortgage loans to foreign buyers have criteria they consider in the apply process.
Criteria to Qualify for a Home Loan in Japan:
— Ability of the borrower to discuss the terms of loan in Japanese
— The visa/residency status of the borrower
— Sufficient and stable income
— The location of the property
Additional Criteria to Qualify for a Real Estate Investment Loan in Japan:
— The decision to buy the property as an individual or as a Japanese company
— The business history of the Japanese company buying the property
— The nationality/Japanese language skills of the executives lists on the company formation documents
Local Real Estate Brokers for Foreigners Buying Property in Japan
When you are clear about your source of funds, and are ready for helping identifying good properties in Osaka, contact us for a free introduction to an available real estate agent.
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