Tips for Foreigners Who Want to Get a Home Loan in Japan

“I’m considering buying a house in Japan, but can I get a loan as a foreigner?”

“Is it possible for a foreigner to buy an apartment in Japan with a mortgage?”

“Will the bank give me a loan if I don’t have permanent residency?”

In this article, I would like to share some tips on how to get a mortgage loan for foreigners who are considering buying a house in Japan, as well as their families and other related people.

This article explains how to get a mortgage loan in relation to permanent residency.

If you are a foreigner considering purchasing a house or an apartment  in Japan, please read this article to the end. We hope that this article will help you to obtain a mortgage and purchase your perfect home in Japan.

Now, let’s go over the points in order!

Can a foreigner get a mortgage in Japan?

 Let’s take a look at the conditions under which you can get a home loan.

What is the most important point for foreigners to get a mortgage in Japan? 

It is having “permanent residence”

If you don’t have permanent residency, the best way to get a mortgage is to have a Japanese citizen or permanent resident spouse as a guarantor.

Other requirements for a mortgage loan are the same as those for a Japanese citizen: at least two consecutive years of employment.

You must be between 20 and 65 years old at the time of application, and under 80 years old at the time of full repayment.

You must also be a full-time employee (including contract employees) with an annual income of at least 3 million yen including tax for the previous year.

Points to keep in mind when a foreigner takes out a housing loan

When a foreigner takes out a mortgage loan in Japan, there is another point to keep in mind in addition to the aforementioned conditions. This is about opening a bank account at a financial institution.

When signing a contract for a mortgage loan, you are required to have a savings account with the financial institution. If you do not have a savings account, please consider opening one using the link below!

>>For more information about opening a bank account 

How to get a mortgage without a permanent residence

“What should I do to get a mortgage without a permanent residence?”

In general, foreigners have a chance to get a mortgage loan by the following methods.

• ・Ask your Japanese spouse to be your guarantor.
• ・Make a large down payment on the house.
• ・Use a bank in your home country.

Ask your Japanese spouse to be your guarantor

As mentioned above, having a Japanese person act as your guarantor will greatly increase your chances of getting a mortgage.

If your spouse is Japanese, or even if he or she is not Japanese, you can have a friend or acquaintance who is a permanent resident and has Japanese citizenship become your guarantor.

However, it is important to note that there are some financial institutions that will not accept your application.

It is also important to note that the conditions vary from financial institution to financial institution, so it is advisable to check with the financial institution beforehand about the conditions of the guarantor.

Make a large down payment for a house

Making a large down payment for the purchase of a house will make it easier for your mortgage application to be approved.

If you have several million yen ready as a down payment, the financial institution will be more likely to consider you as a customer who can pay back the loan without any problem because your income is stable.

Although a down payment does not guarantee that your mortgage application will be approved, you should pay for as much as possible in order to gain the trust of the financial institution.

The more deposit you can put into the purchase of a home, the easier it will be for you to repay the loan.

Use a bank in your home country

It could be easier if you could get a Japanese citizen to be your guarantor, but it is not always the case that your spouse is Japanese.

What should I do if I don’t have a Japanese spouse? You may be asking yourself.

Don’t give up! If you cannot get a guarantor, you may be able to apply for a loan by using the Japanese branch of your home country’s bank.

For example, if the bank in your home country has a branch in Japan, you may be able to apply for a loan there.

Summary

This article has explained how foreigners can obtain a mortgage loan in Japan.

It is very advantageous for foreigners to have permanent residence in order to get a mortgage loan in Japan.

If not, it is important to meet certain conditions, such as having a Japanese citizen as a guarantor.

If you meet the conditions and can get a permanent residence permit, I recommend that you apply for a mortgage after you have obtained the permit.

It may take some time to meet the conditions, but this point is important because the ease of obtaining a mortgage is completely different depending on whether or not you have a permanent residence permit.

Also, keep in mind that preparing a larger down payment to reduce your repayment burden ratio will make it easier to get approved for a loan.

Furthermore, the conditions for loan approval or disapproval vary from financial institution to financial institution, so whenever possible, choose a bank that is easy for foreigners to get approved.

Choosing to buy your own house in a foreign country is a big decision. We hope that the information in this article will help you get your mortgage application approved and enjoy your new home.

So, thank you all again for reading this article!