As part of our series of posts about loans for real estate in Japan, we present this list of banks that provide residential mortgage loans for foreigners in Japan.
Below we provide a complete list of Japanese banks that provide home loans to foreigners, as well as our recommendations for the most foreigner-friendly mortgage loans for foreign buyers in Japan.
Overview of Real Estate Loans for Foreigners in Japan
It is possible to get a loan to buy residential property in Japan as a foreigner.
For borrowers that meet the criteria to get a home loan in Japan, there are several banks that offer loans that allow foreigners to buy a home in Japan. Factors such as residency status, language ability, personal income, and location of the property all play an important role in the approval process.
However, even for buyers that easily qualify for a loan in their home country, it is not easy to get a home loan in Japan as a foreigner. Most foreign buyers that buy a home or condominium in Japan pay cash. Compared to Japanese natives, it is much more difficult for foreign nationals to get a home loan in Japan.
Can Foreigners Get Residential Mortgage Loans in Japan?
Yes, foreigners can get loans to buy a house in Japan. Japanese lenders consider several factors when offering loans to foreigners that want a residential mortgage loan.
Generally speaking, foreign nationals are required to hold permanent residency (or special permanent resident status) in order to get a housing loan in Japan. However, even without permanent residency, it may still be possible to secure a loan from certain banks if specific conditions are met, such as; Japanese language skill, minimum income status, a Japanese spouse, and/or the ability to provide a substantial down payment.
Below we provide our recommendations for easiest home loans for foreigners in Japan, and our complete list of Japanese mortgage banks that consider loans to foreigners (with specific criteria required for each bank).
Best Foreigner-Friendly Banks for Real Estate Loans in Japan
Based on the common criteria Japanese banks use to determine if foreigners can have a loan, some Japanese mortgage lenders are more foreigner-friendly than others.
For borrowers that do not have permanent residency in Japan, our top recommendations for foreigners that want a loan to buy a home in Japan are:
Easiest home loans for foreigners in Japan:
— Suruga Bank (Japanese language required)
— SBI Shinsei Bank (multiple languages supported, higher interest rate)
— Prestia SMBC (multiple languages supported, must have income from Japan)
— Yen Loans (multiple languages supported, higher administration fees)
If the borrower has permanent residency and speaks Japanese, see our complete list of home loan banks for foreigners in Japan (below).
List of Banks in Japan that Provide Mortages to Foreigners
Here is a list of Japanese banks that offer loans to foreigners to buy a home in Japan:
Suruga Bank
— Language: Must understand agreement in Japanese
— Residency: Does provide loans for foreigners without permanent residency
— Locations: Most locations in Japan
— Minimum Income: 4,000,000 JPY
— Minimum Loan: 300,000 JPY
— Maximum Loan: 600,000,000 JPY
— Interest Rate: 1.525 (no PR), 1.075 (with PR or Japanese)
— Prepayment Terms: Partial prepayment 11,000 JPY, full prepayment 33,000 JPY
— Administration Fee: 2.2% of the loan amount
— Website: https://www.surugabank.co.jp/surugabank/
SBI Shinsei Bank
— Language: Must understand agreement in Japanese, English, or Chinese
— Residency: Does provide loans for foreigners without permanent residency
— Locations: Tokyo, Kanagawa, Chiba, Saitama, Osaka, Kyoto, Sapporo, Sendai, Nagoya, Kobe, Fukuoka
— Minimum Income: There is no minimum annual income requirement
— Minimum Loan: 10,000,000 JPY
— Maximum Loan: 1,000,000,000 JPY
— Interest Rate: 3.2 – 4.2%
— Prepayment Terms: 2.0% of principal
— Administration Fee: 2.2% of the loan amount
— Website: https://www.sbishinseibank.co.jp/english/
Tokyo Star Bank
— Language: Must understand agreement in Japanese
— Residency: Does NOT provide loans for foreigners without permanent residency
— Locations: Tokyo, Saitama, Chiba, Kanagawa, Osaka, Kyoto, Hyogo, Nara, Shiga, Wakayama, Nagoya, Fukuoka, (maybe Sapporo)
— Minimum Income: Offers loans to both individuals or Japanese corporations (assent management company only), business history over 3 years for self-employed and full time employee and income 5,000,000 JPY or more in the previous year
— Minimum Loan: 20,000,000 JPY
— Maximum Loan: 200,000,000 JPY
— Interest Rate: 2.5 – 2.6 %
— Prepayment Terms: Within 1 year: 2 % of the principal amount / 1-3 years: 1.5% / 3-5 years: 1.0% / more than 5 years: 0.5%
— Administration Fee: 2.2% of the loan amount
— Website: https://www.tokyostarbank.co.jp/foreign/en/
Mitsubishi UFJ Bank
— Language: Must understand agreement in Japanese, English, or Chinese
— Residency: Does NOT provide loans for foreigners without permanent residency
— Locations: Ask branches
— Minimum Income: There is no minimum annual income requirement
— Minimum Loan: 5,000,000 JPY
— Maximum Loan: 300,000,000 JPY
— Interest Rate: 1.4 – 3.0%
— Prepayment Terms: Partial prepayment 16,500 JPY, full prepayment 33,000 JPY
— Administration Fee: 2.2% of the loan amount
— Website: https://www.bk.mufg.jp/global/
AU Jibun Bank
— Language: Must understand agreement in Japanese
— Residency: Does NOT provide loans for foreigners without permanent residency
— Locations: Most locations in Japan, except on the remote islands
— Minimum Income: 2,000,000 JPY
— Minimum Loan: 5,000,000 JPY
— Maximum Loan: 200,000,000 JPY
— Interest Rate: 1.113 – 3.141%
— Prepayment Terms: Partial prepayment free, full prepayment 33,000 JPY
— Administration Fee: 2.2% of the loan amount
— Website: https://www.jibunbank.co.jp/?lang=en
Sony Bank
— Language: Must understand agreement in Japanese
— Residency: Does NOT provide loans for foreigners without permanent residency
— Locations: Most locations in Japan, except on the remote islands
— Minimum Income: 4,000,000 JPY
— Minimum Loan: 5,000,000 JPY
— Maximum Loan: 200,000,000 JPY
— Interest Rate: 1.707 – 4.406%
— Prepayment Terms: No penalty
— Administration Fee: 2.2% of the loan amount
— Website: https://sonybank.jp
SBJ Bank
— Language: Must understand agreement in Japanese
— Residency: Does NOT provide loans for foreigners without permanent residency
— Locations: Tokyo, Kanagawa, Chiba, Saitama, Aichi, Gifu, Mie, Shizuoka, Osaka, Kyoto, Nara, Hyogo, Fukuoka
— Minimum Income: 4,000,000 JPY
— Minimum Loan: 1,000,000 JPY
— Maximum Loan: 2,000,000,000 JPY
— Interest Rate: 3.525 – 4.025%
— Prepayment Terms: 2% of the repayment amount
— Administration Fee: 2.2% of the loan amount
— Website: https://www.sbjbank.co.jp
Prestia SMBC
— Language: Must understand agreement in Japanese or English
— Residency: Does provide loans for foreigners without permanent residency
— Locations: Hokkaido, Ibaraki, Saitama, Chiba, Tokyo, Kanagawa, Shizuoka, Yamanashi, Nagano, Karuizawa, Gifu, Aichi, Mie, Shiga, Kyoto, Osaka, Hyogo, Nara, Wakayama, Fukuoka (within an hour from the branch)
— Minimum Income: 10,000,000 JPY
— Minimum Loan: 10,000,000 JPY
— Maximum Loan: 500,000,000 JPY
— Interest Rate: 0.89 – 2.8%
— Prepayment Terms: Partial prepayment 5,500 JPY, full prepayment 44,000 JPY
— Administration Fee: 2.2% of the loan amount
— Website: https://www.smbctb.co.jp/en/
Rakuten Bank
— Language: Must understand agreement in Japanese
— Residency: Does NOT provide loans for foreigners without permanent residency
— Locations: Most locations in Japan, except on the remote islands
— Minimum Income: 4,000,000 JPY
— Minimum Loan: 5,000,000 JPY
— Maximum Loan: 200,000,000 JPY
— Interest Rate: 1.25 – 2.25%
— Prepayment Terms: No penalty
— Administration Fee: 330,000 JPY
— Website: https://www.rakuten-bank.co.jp/corp/english/
Yen Loans
— Language: Must understand agreement in Japanese, English, or Chinese
— Residency: Does provide loans for foreigners without permanent residency, non-residents in Japan (people who live in Australia, Canada, China including Hong Kong SAR, EU member countries, Singapore, South Korea, Taiwan, Thailand, UK, USA, Vietnam)
— Locations: Hokkaido, Saitama, Chiba, Tokyo, Kanagawa, Kyoto, Osaka, Kobe City, Nagoya City, Fukuoka City
— Minimum Income: There is no minimum annual income requirement
— Minimum Loan: 5,000,000 JPY
— Maximum Loan: 200,000,000 JPY
— Interest Rate: 4.47%
— Prepayment Terms: Within 1 year: 3.0% / 2 years: 2.0% / 3 years: 1.0%
— Administration Fee: 2.2% of the loan amount (minimum 495,000 JPY)
— Website: https://www.yenloans.com
Criteria to Get a Mortgage for Residential Property in Japan as a Foreigner
All of the banks that offer residential mortgage loans to foreign buyers have criteria they consider in the evaluation process. The most important criteria for foreigners to be eligible for a Japanese home loan are:
— Ability of the borrower to discuss the terms of loan in Japanese
— The visa/residency status of the borrower
— The location of the property
— Sufficient and stable income
Japanese banks that offer real estate loans to foreign borrowers can generally be divided into two categories: banks that require Japanese language abilities, versus bank that provide multilingual support (such as English or Chinese).
Additionally, most banks will not lend money to buy a home in Japan for locations that outside the healthiest neighborhoods in the biggest cities. For example; loans to buy a condominium in popular neighborhoods of Tokyo and Osaka are much more common than loans to buy a condominium in smaller cities in Japan. Loans to buy homes outside of the major cities are mostly non-existent.
Local Real Estate Brokers that Specialize in Residential Property
The ability to find financing for residential loans in Japan is often the first step for many home buyers. Once you have done some research on funding the real estate purchase, working with a local Osaka real estate agent will be a logical next step.
For introductions to real estate agents in Osaka that specialize in residential property, contact us anytime.
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